Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Global Financial Crisis, Essay Example

Pages: 3

Words: 851

Essay

Background

The global financial crisis that has been prolonged for a while now first instigated the showing of its impacts throughout the middle of 2007 and the beginnings of 2008. As a result, the losses of banks worldwide have exceeded the quantity of 888 billion dollars. Politically speaking, this crisis has been caused by the democratic deficits around the world, causing a massive lack of hope and political interest in media among younger adults. In addition, the crisis has thrown stock markets into a recession (some even crash). As a result, governments have had to go to extremes measures as to create “rescue packages” in order to guarantee that their financial systems prevail in times like these. If this global financial crisis is not halted once and for all, individuals everywhere will be affected in terms of their livelihood. The individuals responsible for this such problem must take action and avoid bailing out in order to ensure a foundation for the future.

Policy Options

Thus far, multiple governments have proved successful in supporting various banking systems. This has been done by injecting new capital, affording warranties on new bank debt issuances, and (the more recent one), through asset relief schemes. Despite the fact that these three methods have excelled in bringing the banking system back to equilibrium, these kind of drastic measures take time, more than anything. Regardless, these kinds of implementations have been able to fortify the confidence of the banking system and have reduced grave risks. This kind of support has been so corporeal that banks in European areas have been able to receive about 115 billion euro of capital injection from a multitude of governments and approximately 217 billion euro for funding warranties. In spite of the extended period of time that it takes for governments to implement these ideals into different governments, it is something that works and something that should be considered.

As the Vice President of the ECB, Lucas Papademos recommended, a second course of action that is viable is the implementation of macroeconomic policies in order to trigger aggregate demand and instigate various measures that will be able to repair banks’ balance sheets (Papademos). As a result, this would cause the invigoration of credit in the world’s economies. If this policy option were to be undertaken, the global financial crisis would be reduced and the cycle would be prevented. Vigorous policy efforts must be implemented in all kinds of economies so that world trade is able to be reinvigorated and so that financial capital can come to its equilibrium. As a consequence, this implementation would support emerging market economies and global growth. By prioritizing these macroeconomic policies, we would be able to enhance the economy’s recovery and therefore repair the financial system as a whole in order to achieve financial stability within all the world’s economies.

In order to fix the crisis, individuals must be open-minded about reform. Reforming financial systems internationally would provide a unique insight into different kinds of economic necessities. Reforming financial institutions such as the IMF and the World Bank would give new lenses to individuals and ultimately make them realize which countries require revitalization. Reform would without a doubt have to include heeding more attention to poor third-world countries. I say this because of the manner in which these poor countries often do not have the opportunity to state their opinion on how the global economy should be run. This reform’s objective would be to make countries a bit more equal, and if carried out effectively, the reform would place all countries at an equilibrium (no country higher or more powerful than the other). A reason that this reform is vital is due to the fact that it has been proven time and again that whenever reform takes place, it is far too often in the favor of rich countries. As World Bank President Robert Zoellick put it: “The developing world is becoming the driver of the global economy. Led by emerging markets, developing countries now account for half of global growth and are leading the recovery in world trade” (Shah). Because of this, more attention must be placed on third-world countries.

Recommendations

  1. In order to see to it that there is a financially stable future for the world, current economic models must avoid adhering to the inconsideration of other individual’s worries, concerns, and troublesome.
  2. It is imperative that reforms (such as listening to poor countries) are able to lay the foundations for the future economic growth of all nations and sustained growth throughout the ages.
  3. Macroeconomic policies must be implemented in order to achieve a better aggregate demand, create credit in the world’s economies, and obtain financial stability.
  4. Fiscal policies must be applied in order to achieve a perfect balance among both an economy’s need to recover and long-term confidence in an economy’s long-term sustainability.

Works Cited

Papademos, Lucas. “How to Deal with the Global Financial Crisis and Promote the Economy’s Recovery and Sustained Growth.” European Central Bank. Eurosystem, 26 Mar. 2009. Web. 10 Mar. 2015.

Shah, Anup. “Global Financial Crisis.” Social, Political, Economic and Environmental Issues That Affect Us All. Global Issues, 14 Mar. 2013. Web. 10 Mar. 2015.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

7 Steps of Problem Solving, Essay Example

Introduction Every business, irrespective of its size or industry, has specific target goals to achieve. Thus, goal achievement entails managers making strategic decisions based on [...]

Pages: 5

Words: 1398

Essay

Teens, Suicide and Bullying, Essay Example

The act of bulling in this case involved punching as well as kicking the young Pennsylvanian boy, Nadin Khoury, then hanging the boy on a [...]

Pages: 1

Words: 325

Essay

Minnie in “Trifles”, Essay Example

Susan Glaspell’s short story, “Trifles” proffer a narrative in which the murder of Mr. Wright at the hands of his wife and the ensuing investigation [...]

Pages: 2

Words: 573

Essay

Columbia Supplement, Essay Example

Columbia University is an appealing university because it is located in one of the urban center of American politics, as the Department of Political Science [...]

Pages: 1

Words: 379

Essay

John Brown: A Hero or a Terrorist, Essay Example

October 16th, 1859, the day when John Brown raided a U.S military arsenal located at the Harper’s Ferry in Virginia in anticipation of provoking a [...]

Pages: 2

Words: 581

Essay

To What Extent Do the Concepts That We Use Shape the Conclusions We Reach? Essay Example

Introduction Human beings seem to be always determined to define human understanding, and to identify the most correct means of achieving this. Some argue that [...]

Pages: 6

Words: 1721

Essay

7 Steps of Problem Solving, Essay Example

Introduction Every business, irrespective of its size or industry, has specific target goals to achieve. Thus, goal achievement entails managers making strategic decisions based on [...]

Pages: 5

Words: 1398

Essay

Teens, Suicide and Bullying, Essay Example

The act of bulling in this case involved punching as well as kicking the young Pennsylvanian boy, Nadin Khoury, then hanging the boy on a [...]

Pages: 1

Words: 325

Essay

Minnie in “Trifles”, Essay Example

Susan Glaspell’s short story, “Trifles” proffer a narrative in which the murder of Mr. Wright at the hands of his wife and the ensuing investigation [...]

Pages: 2

Words: 573

Essay

Columbia Supplement, Essay Example

Columbia University is an appealing university because it is located in one of the urban center of American politics, as the Department of Political Science [...]

Pages: 1

Words: 379

Essay

John Brown: A Hero or a Terrorist, Essay Example

October 16th, 1859, the day when John Brown raided a U.S military arsenal located at the Harper’s Ferry in Virginia in anticipation of provoking a [...]

Pages: 2

Words: 581

Essay

To What Extent Do the Concepts That We Use Shape the Conclusions We Reach? Essay Example

Introduction Human beings seem to be always determined to define human understanding, and to identify the most correct means of achieving this. Some argue that [...]

Pages: 6

Words: 1721

Essay

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!