Avoiding the 2008 Financial Crisis in Western Unions

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Business skills
Introduction
The financial crisis in Europe and its economic decline since the period of Great Depression as
well as unprecedented bailouts under the EU member state government along with credit
guarantees for large number of the banks has created stronger political and popular backlash in
most of the EU member states against the financial institutions as well as in particular banks. The
study discusses about any possible chance you could have a rose to avoid the financial crisis of
2008 in western unions by implementing government all policies of Europe. The prime objective
of the study also includes examination of the potential causes as well as assessing the
inevitability of these causes during the period of financial crisis.
Discussion
Possibilities of avoiding the 2008 financial crisis by Western Nations
The global financial recession on the crisis in the year 2008 has been the result of the downturn
which has been identified in one of the significant local sectors belonging to the US economy
and causes greater threats to functioning of the Global markets which are financial oriented.
Structured problems which had been identified in the Russian financial sector had eventually
exacerbated negative consequences after effects of global crisis that had prevailed in the Russian
economy by that time period. Over the global level Prime steps of minimising costs of crisis
must have dealt by restricting the growth and development of protectionism preventing hard
landing belonging to large group of significant economics and coordinating the measures under
economic policy. The great recession of 2008 has been exactly opposite of the great boom
identified in 2003 where the world GDP had a substantial growth of one third increase in the
total output. Business public as well as the Government of countries which were involved in the
great recession of 2008 might have happened and real straight out the international crisis of
economy on large scale of Great Depression. if gloomy forecasts would not come through then
the measures undertaken by government would have been effective.
Another possibility of avoiding the financial crisis could be a balanced financial sector of the
different economies of the world it would have resulted in a tremendous increase in the trade
protectionism which has been headed off and actions of distinct governments would be
coordinated. The street downturn could have been avoided by launch economic and it might have
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Business skills
been possible for keeping the Global recession within the accounts of reasonable limits
(Grigor’ev and Salikhov, 2009). According to Marxist theory possible amount of contradictions
where observed to build up by the same time and conditions has been sufficiently created for the
cyclical crisis over accumulation at the time of intensive Boom growing imbalances in sectors as
well as consistent increase in the inflation. If the government of every Nation could have taken
appropriate steps or undertaken the actions such as internal market rules in 2009 before the
2008’s recession even then the conditions had not been worse. In the year 2007 when the Boom
had lost stability then only the governments of different economics was supposed to take
adequate actions or implement new policies for controlling the inflation and money supply
within the economy to avoid the recession phase. By the periods estimates of future growth of
the international economy became much more Pessimistic. After the causes which has led to the
recession, one of the chief reasons behind the avoidance of the financial crisis could be incorrect
monitoring of the systematic problems within International economy involving private as well as
public financial sectors by the OECD (organisation for economic cooperation and development).
Mitigating consequences resulting from the financial crisis as well as seeking the best way out of
the recession phase without causing any major loss for developing and developed groups of
countries could be the fundamental way for preserving The stability along with limiting scale of
the crises. The income inequality among the developed and developing Nations had been one of
the major causes of the recession or global crisis. for instance at the time of recession there has
been an enormous gathering of negative or deficit Balance of payments in United States
however, an enormous growth in the surplus of developing countries which has amounted almost
trillions of the dollars are 1.2% of the entire world GDP could have been controlled brought
under balance by the government through monetary and fiscal policies (Grigor’ev and Salikhov,
2009). Globalisation could have caused a stable and lower inflation and unemployment rate in
economies and recession phase could be definitely avoided.
Examining potential causes and assessing their inevitability
Significance and relevant causes could be charged against the recession of the global economy in
2008 and are efficiently sorted in this section. The most certain issues with economy at the time
of this global boom during the year of 2003 till 2007 have been sect oral in nature. Too much
investment in certain things such as energy housing and commodities has been observed.
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