Lessons and Policy Implications from the Global Financial Crisis

2010

Global Finance in Crisis: The politics of …, 2010

What began in the summer of 2007 as a problem in a relatively unknown segment of the US housing finance market has very quickly turned into the most severe global financial crisis since the 1930s. The impact of this crisis has escalated far beyond its point of origin, affecting countries around the world, and spilling over from the financial system into the real economy.

Procedia Economics and Finance, 2015

The global financial crisis has taught the economies all over the world serious lessons. The aim is to assure a similarly tough crisis would not occur again. The paper focuses on the question whether stricter financial regulations are needed and how the global financial system can be reformed to become more resistant to shocks. Strengthening the financial regulation and the issue of financial stability have become a key public policy issue for economies with a significant role in reaching agreements between countries toward this direction. It is the G-20 economies and the IMF that are committed to maintaining financial stability and the transparency of the financial sector, which is likely to remain the source of economic crises. Nevertheless the trade-off between safety and economic growth has to be taken into account. This paper examines what has been achieved in the field of implementing regulatory reform steps and whether they provide protection to consumers and taxpayers as well as the preparedness of financial institutions when it comes to facing potential shocks.

The global financial crisis was the most severe international economic crisis since the Great Depression. As it was the case after the earlier crises, the financial system was intensely discussed and the regulatory framework was shaped accordingly. The regulatory changes are still in process. The purpose of this chapter is to provide insights into the financial regulations after the financial crisis and to submit some details about the regulatory bodies and changes. This chapter includes a general review of the discussions in the global financial system in the wake of the financial crisis. The regulatory changes in bank capital, the shadow banking system, trading and financial reporting of the financial products and credit rating agencies are briefly described. The criticisms of bank capital regulations are submitted. The effect of both the crises and the regulatory changes are discussed.

European Yearbook of International Economic Law 2010, 2009

International Journal of Financial Research, 2020

The Global Financial Crisis of 2007-09 has been the most severe global shock after the Great Depression of the 1930s. A crisis of this order has changed the outlook on international socioeconomic integration and concerns on financial security and global polity. As we are a decade after the crisis, it is instinctively imperative to relook and analyse the lessons learnt and the policy responses that helped ease the crisis. This paper is an attempt in that direction. Research over the years suggests that global financial system has evolved into a more innocuous network at limited unintended costs. Globally policy regulations have tightened to lessen the impact of future crises and today most countries have some form of macro-prudential surveillance.

The global financial crisis: root causes, lessons and the future of global financial security, 2022

The 2007/2008 global financial crisis, also known as the Great Recession, represents a pivotal moment in recent economic history, marked by the collapse of the Lehman Brothers and significant global repercussions. This essay, written by Samuel Odusami at Nottingham Trent University, delves into the root causes of the crisis, the lessons learned, and the implications for future global financial security. The crisis is dissected through the lens of neoliberalism, an economic ideology characterized by minimal state intervention and the primacy of free-market principles. The essay argues that the unchecked application of neoliberal policies fostered an environment conducive to regulatory arbitrage, complex and excessive financial innovations, and ethical compromises driven by corporate greed. It highlights the detrimental effects of a relaxed regulatory framework and the reckless financial behavior it enabled, leading to widespread economic instability. Through a thorough review of literature, reports, and case studies, Odusami illustrates how neoliberal ideals precipitated systemic risks and amplified the crisis's impact. The essay concludes by emphasizing the need for a balanced approach to economic governance, recognizing the interconnectedness of global markets, and ensuring accountability within the financial system to prevent future crises.

Annals of Faculty …, 2010

The global economic and financial crisis showed the limits faced by the international financial system. International financial regulations in general, and especially the banking sector regulations, should be refined and adapted to build a stronger and stable ...

The world economy has experienced a number of crisis throughout history (i.e., 1929-1934 period crisis). Each crisis has led governments to take regulatory actions to prevent another crisis. However, governments, economists, and regulators did not foresee the deterioration in the financial sector that led to the global financial crisis of 2008 . The Dodd–Frank Act was the most significant response to the financial crisis of 2007. In this paper, I discuss the nature of the global financial system and how this system influence the major financial institutions. In addition, I discuss the major regulatory initiatives that were set in place to deal with the 2008 financial crisis. I also discuss and analyze the ability of the US financial system to compete in the global market place by giving some example of fiscal and economic strength that the US financial system should take advantage to be competitive and prevent another financial catastrophe.

Australian Journal of Corporate Law, 2010