COMPARATIVE ANALYSIS OF WORLD FINANCIAL CRISES, THEIR CAUSES AND CONSEQUENCES

Author(s): Yarovenko S.E., Niyazbekova S.U.

Rubric: Domestic and foreign trade

DOI: 10.21777/2587-554X-2021-4-48-57

Release: 2021-4 (39)

Pages: 48-57

Keywords: crisis, global financial crisis, economy, financial market, financial risk

Annotation: The study of global financial crises should help not only to understand their causes of crises but also helps to teach economists to quickly and painlessly get out of them. Society strives to improve the quality and standard of its life, all this is achieved through sustainable economic growth. It should be noted that the long-term economic growth is not uniform, and there are constant periods of economic instability. The economy has the property of cyclicality, which implies crises, growth and decreases. Society and the state always strive for the peak of economic development. However the country’s economy cannot always be at its peak as after a growth recessions always occur. Almost every country suffers from global financial crises but it is worth noting that the degree of its influence on the country’s economy depends only on how strongly the country is developed. An economic crisis is a situation in the national economy when there is a sharp decline in production. When an imbalance occurs in economic relations, a crisis occurs in the economy. Studying various directions in the economy, various reasons for the emergence of the crisis are identified. For example, the Austrian school believes that the causes of crises are the accumulation of erroneous investments when information is distorted in the market, and market participants invest in losing assets. According to Karl Marx, the market is oversaturated for market economy reasons, as well as for the producers’ desire to increase profits, thereby creating overproduction.

Bibliography: Yarovenko S.E., Niyazbekova S.U. COMPARATIVE ANALYSIS OF WORLD FINANCIAL CRISES, THEIR CAUSES AND CONSEQUENCES // Economics and Management. – 2021. – № 4 (39). – С. 48-57. doi: 10.21777/2587-554X-2021-4-48-57