Financial crises, causes and consequences : lessons learnt

Abstract

The ongoing financial crisis and economic crisis is measured by many financial analysts and economists to be the worst global financial crisis since the Great Depression. The financial crisis hit almost nearly all the financial institutions and economies. Governments and organisations such as IMF, EU, US and their relevant Central Banks had interceded to save Banks and economies. The dissertation go through the ongoing global financial crisis starting from the historical economic background of the discussed countries, portrait reasons, causes, consequences, effects, phases of the financial crisis, sequence of the actions taken to resolve the crisis, the current recovery situation and lessons learnt up to now. The crisis is not over yet and is touching into other expected and non-expected phases. However, this dissertation points out that the broad common reasons of the ongoing financial crisis is the reckless practices, human greed and lifestyle which go beyond the available means. “The gap in our economy is between what we have and what we think we ought to have – and that is a moral problem, not an economic one.” Paul Heyne