The paper "Current Financial Crisis" is a wonderful example of a report on macro and microeconomics. In the underlying report, we have to locate the causes and effects of the current economic crisis. What the reasons are behind that and how it became to be the cause of certain disintegration that affected the economy of the whole world. Introduction In the contemporary era, the world’ s economy revolves around the superpowers, which create a monopoly, extract surplus to the other countries, and accumulate wealth. The economy is not stagnant; it always moves in a circular manner rather than linear.
It is not the case that economy only affects particular regions; in fact, it has left its effect all over the world and has generated a crisis. Crisis always emerges due to weak policies made by the metropolitans. The history of the economic crisis goes back to the “ Great Depression” that started in 1929-1935. It gives us a brief understanding of the economic crisis. America had joined the war late; during the war, America was the only stabilized economic country and she had financed Europe for its reconstruction.
America had invested a lot in the making of Europe. Due to this financial aid, the American economy had declined, due to the accumulation of debt and ultimately the economy boomed. The sole aim of the war recovery was to produce more capital; the American economy was most affected in this era, due to lending the loans. There are various causes behind these crises. It is possible that it was due to weak institutions, inflation, unemployment, and agriculture. So here we will locate some causes and effects of the current economic crisis. The crisis first started in the 1930s but the remedies for removing that crisis remain since 60 years.
Now some new suggestions are required to overcome this financial crisis. There must be some monetary institutions like the IMF. Also, the banking system must be stabilized. Causes and Effects of Economic Crisis The collapse of the American co-operative sector in the midst of the global financial crisis and its co-committed efforts on the European economies has set tide global recession. Besides, it has also exposed or brought about some inherent flaws of global capitalism ranging from mindless deregulations to the limitations or fragility of the market economy.
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