The global economic crisis is an important part in the field of economy. It is a stain in history, but one that may perhaps be an important stain in ensuring that a lesson can be learnt so as the future of world economy may be made even more stable in future years.
Just a few days ago, we stumbled upon an article written by Robert Samuelson for the Washington Post. He discussed the global financial crisis which occurred some ten years prior. In that article, one of the main points of discussion was that no one has yet been able to satisfyingly elucidate the essence of why the crisis happened in the first place.
The article looked at it from the American viewpoint, highlighting the complexity and providing one of many plausible reasons as to why the incident happened.
Many have said that it started in 2007 with the subprime mortgage market in the US, which then developed into a chaotic banking crisis on an international scale. A name that you will definitely see in this discussion is Lehman Brothers: arguably, they were the investment bank which collapsed and led to this immense breakdown.
In turn, this led to the Great Recession - of which most developed countries faced recession - and the European debt crisis - of which similarly the detailed reasons cannot be said to have been conclusively made certain.
As students of economics, this article provides some food for thought. Could there have been ways to prevent the crisis happening? Is there a shift in the current economic climate that may explain why the incident happened? Students must treat this as a lesson in making sure that such calamities do not occur in the future. The next generation has the important task of being better than the previous generation, and with world economics, the rapidly changing dynamic of finance and growth will prove to be the key point by which next generation economists may ply their trade upon.
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Till next time.