Effects Of The Global Financial Crisis

1050 Words 5 Pages
There is always financial crisis in the global economy and the effects really show in the middle of 2007 and into 2008. Where the world stock markets have fallen around the world and large financial institutions collapsed or either bailed out by the governments by rescue packages and bail out their financial systems.
Economy was concerned about those who should be responsible for the financial problems are being bailed out. Since global financial meltdown affects almost everyone globally.
After the entire financial crisis, the questions will be how to deal with recession. Many governments have started to contemplate these kinds of measures. For example, South Korea reduced its interest rates, as has Japan, China, England, various European
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However, in US most states found out those markets are not always able to function on their own in the current financial crisis.
After the global crisis how the economy going to fix the issue such as unemployment rates, interest rates, deflation and inflation. How the government going to come up with the plans as invisible hands to fix the economy or just let it fix itself. There are many solutions come up from different federal government such as introduce incentives or extend the unemployment benefits to help the families to circuit the money in the economy so the when the family do the consumption the money will circulate back to the economy.
The global economic crisis that began in 2007-2008 which was a huge effect on unemployed people around the world and estimated incensement from 178 million in 2007 to 197 million in 2012, with a peak of 212 million reached in 2009. However the world 's unemployment rate rose again. With uncertain economic outlook, the policies have weakened aggregate demand, holding back investment and hiring," said Director-General Guy Ryder presenting the ILO Global Employment Trends 2013 report. "This has prolonged the labor market slump in many countries, lowering job creation and increasing unemployment
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It has created a crisis firewall and increase financing needs of countries which hit by global financial crisis in order to help strengthen global economic and financial stability and created temporary borrowing agreements. It also help the world 's poorest national by undertaking an unprecedented reform the policies toward low-income countries. and increase resources devoted to concessional lending. The IMF also strengthens its legitimacy and agreed on wide ranging governance reforms to increase importance of emerging markets. IMF also contributing to monitoring, forecasts and policy advice. The IMF also contributes to ongoing effort to reform the global financial architecture through G20 industrialized and emerging

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