What Is The Impact Of The Global Financial Crisis (GFC)?

In the World Economic Forum (WEF), Rob Whitfield, Mingkang Liu, Paul Sheard, and Helen Zhu from different backgrounds discuss their points regarding another Global Financial Crisis (GFC). Rob Whitfield argues that GFC is avoidable because the better financial system and regulation would prevent another GFC (WEF, 2014). Whitfield Shares three observations about GFC: first, governments were not aware of the risks immediately; second, the government’s measure the size and depth of the risks in the right way (WEF, 2014). Thus, the financial institutions completed a lot of measurements to solve banking problems after 2008 financial crisis. For example, many countries strengthened their effectiveness and accountability by better cooperation with other countries. National governments solved endogenous financial problems positively. These measurements were used to investigate assets or unsecured credit in the US and European markets and found improvement in the financial system and monetary system. In this assignment, I agree …show more content…
According to the IMF, the developing countries economy grew after the GFC in the 1980s. Financial crisis has economic impacts on developing countries on health and education, prospects for recovery and stability. However, numbers of issues remain unresolved, such as the traditional boundaries that are the issue of cultural issues and behavior (WEF, 2014). The banks are not willing to share their bank records information, so the share information is still limited (WEF, 2014). The crisis of credit visualized related to worldwide finances, the systems have not adapted to the GFC. GFC is caused by many complex factors, it is not only about the problems of some financial institutions. Overall, another GFC is inevitable due to the most of the economies have been global in scope and many uncertainties in the financial systems and