The paper “ Causes of Global Financial Crisis, Impacts of Global Financial Crisis on Saudi Economy” is a persuasive example of a literature review on finance & accounting. The global financial crisis is one of the issues that have been debated strongly across the globe. The initial signs of the global financial crisis manifested in late 2008 in the US and shifted rapidly to the majority of the developed markets and then stretched globally (Attia, 2010). According to Abdullah (2009), the results of the crisis faced the nation at varying speed and intensity of effects in accordance with the level of openness of their market in the world economy.
It also affected according to various factors and has replicated the crisis rapidly and directly on the financial industry and banking indicators. In the United States alone, Banks were faced with bad loans in the prime mortgage market. The research shows that in 2008, numerous financial challenges were revealed in some bigger banks in the US that resulted in a credit market freeze, leading to the global financial crisis and a global economic recession (Davidson, 2009). If one considers the Global financial crisis to not yet over, then rationale being the issues to do with sovereign debt problems in numerous European nations, as well as Ireland and Greece, where states have been assisted monetarily by Eurozone member states (Attia, 2010).
There exist uncertainty concerning global economic expansion, and the interest rates stay at record lower levels in several nations to attempt to improve economic growth and shun another global recession. Siddiqi (2009, p. 46) asserts that the US has been employing a quantitative easing approach (money printing) to attempt to enhance its economy.
However, if the real cause and effects are known and dealt with, then it will be difficult to address this which still threatens every sector of the economy. In light of this realization, this paper seeks to address the significant causes of the global financial crisis, the repercussions of the global financial crisis on the economy of Saudi Arabia, and how effective the government policies are tackling its repercussions.
Abdul Latif, A. (2009). The Reasons for the Global Financial Crisis, the First Conference of the Faculty of Economics and Administrative Sciences: Hashemite University
Abdullah, K. ( 2009). The International Financial Crisis. Middle East Studies Center.
Abu Hammour, M. (2009). The International Financial Crisis. Jordan: Middle East Studies Center.
Attia, M. (2010). The Global Financial Crisis and Its Impact on Financial Markets. House of university education. Egypt.
Davidson, A. (2009). How the Global financial markets really work. London: UK & Philadelphia, US, Kogan Page Ltd.
Land, T. (2009). The Middle East counts the cost of the recession. The Middle East (01/2009), pp. 58–59.
Siddiqi, M. (2009). Surviving the international crisis. The Middle East (01/2009) pp. 45–48.