We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE GLOBAL ECONOMIC CRISIS: CAUSES, DYNAMICS, CHARACTERISTICS.
- Authors
Radun, Viktor
- Abstract
This paper provides an analysis of the causes, dynamics, factors and characteristics of the current global financial crisis. The essential question the analysis poses is: what is the original source of the crisis and by what mechanism did it expand? The expected continued growth in housing prices was the source of ballooning real estate prices, a phenomenon that was perceived as a housing "boom" or "bubble." The paper identifies the following causes of the crisis: the financialization trend, the deregulation of the financial market and the extremely expansionist monetary policy of the US central bank (the FED). We uncovered the following significant factors: a) the longterm nature of the recession of the US economy; b) the responsibility of the FED; c) the deregulation of the financial market and the creation of financial innovations (securitization, new forms of mortgage obligations); insufficient control and irresponsible behavior on the part of key actors in all phases of financial operations; e) financialization. The developing real estate "bubble" has been accompanied by a deepening gap between expected and actual values. Discrepancies between expected and actual tendencies and values in each phase of the crisis deepened, creating a fundamental disequilibrium, which was bound to end in a bust.
- Publication
Megatrend Review / Megatrend Revija, 2010, Vol 7, Issue 1, p347
- ISSN
1820-3159
- Publication type
Academic Journal