Global Financial Crisis Term Paper:
Global financial crisis is the name of the latest economic crisis which started in 2008 and its results are visible even now. It is considered to be the worst financial crisis since the time of the Great Depression. The global financial crisis started in the USA and very soon spread on other countries of the world, because the US economics is very influential and has its serious impact on the financial stability of the planet. Among the main factors which have caused the crisis are the high prices on the resources used for production, the high prices on the ready products (caused by the high cost of production), expensive energy, gas, oil; the threat of recession, the collapse of the credit market, etc.
According to the analysis of the reputed experts the global financial crisis of the 2008 is the crisis of the developed countries, because its major impact is observed on the rich developed post-industrial and industrial countries.
The year of 2008 is known to be the beginning of the crisis which started from the enormous inflation, which struck the developing countries, because the world currencies became very expensive. In fact, in 2009 the situation changed cardinally and the enormously low cost of dollar was observed and it influenced the US negatively. The population of the US and other developed countries exhausted the market of crediting and it caused the problems related with the cost of currencies. In addition the problem of unemployment appeared and in 2011 the highest number of the unemployed was registered in the world – more than 200 million.
There are dozens of variants which can be used to defeat the crisis, the most popular of which are to change the whole economic system, regulate economics, increase the birth rates in Europe, support of the agriculture, etc. The student can try to analyse the problem professionally and suggest his own solution to this problem. But at first one is expected to define the cause of the global financial crisis, its core aspects and principles, the dangers it hides and its effect of the economics of the planet. In the end the student should evaluate the relevance of the topic and summarise the topic on the global financial crisis objectively.
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