A crisis disrupts the economy of a country and it casts it backwards from the development perspective, deepening the gaps between „it was”, „it is” and „it will be”. Decades after many severe events occurred in the economic history, the criticisms regarding the past crises are still interpretations, no matter how much they were debated. Many researchers offer today possible solutions to the yesterday's crises, but let us not forget that business optic differs over time, as do the economic, social and political circumstances of the ages. It seems simple to dissect the previous crises, to find their causes and to crucify their moral authors. It is more difficult to prevent other imbalances, and especially not to commit even more damage than it was committed in the past. The recent crisis proves to be unwittingly biased: the countries, the economic sectors and the people go through it at different rhythms and do not react identically. But the crisis also dispels some boundaries, because it overrides institutions, borders and egos. It is true that it gives rise to many interrogations. We can provide answers to some of them, leaving the future to prove us right or wrong.
The present global crisis is far away from being solved and EU is trying hard to manage a more realistic economic recovery plan. This textbook combines the comprehensive coverage of the key policy areas of the European Union with the analysis of the global crisis impact. The main problem is that the economic recovery process is very slow and EU is not yet able to find optimal solutions for its Member States. The economic environment is changing very fast and it is very difficult to find pertinent trends for the next few years. The main objective of this research is to overview the EU economy and to forecast its evolution. In order to reduce the gap between theory and reality, the authors combined a lucid overview of theories with illustrative data. This textbook intends to offer a sound understanding of economics and policies of the EU and it is address to students, researchers and professional policy makers alike, which are interested in the enormous changes taking place in the European economy.
The global economic crisis that began in 2008 has affected all aspects of life, which has resulted in political instability, personal financial troubles, and a growing number of business bankruptcies. While these are serious issues, simply developing a government policy that injects an economy with money is not an appropriate means to achieve economic recovery and long-term economic development unless combined with an effective and efficient governing system. The present research studies whether the strong relationship between governance and growth exists during economic crises or only during non-crisis periods. The results of the current research show that the global economic crisis has had an influence on the relationship between governance and economic growth. Consequently, the results of the current research show the instability in the relationship between governance and economic growth during the economic crisis; this unsteadiness is a sign of the need for long-term strategies to promote global and national good governance practices that are not adversely affected by crises
The book examines the causes, course, and repercussions of the 2008 global financial crisis. Chapter one examines the root causes of the 2008-2009 global financial crisis, course it has taken, in the US and the Global economy. Chapter two examines the impact of the US financial crisis, which culminated into a fully fledged financial crisis and is in part to blame for the ongoing European debt and economic crisis, on US socioeconomic and politics. Chapter three presents an in-depth look at securitization, highlighting how a mix of financial liberalization amid lax financial supervision and regulation, contributed much to aggravating the impact of the 2008-2009 financial crisis. Chapter four looks at the reverberations of the global financial crisis on the global economic and political order, reflected in the emerging global economic and political order and international relations, with special emphasis on Opportunities and Challenges in Revitalizing Asia-Africa Cooperation. Chapter five takes a closer look at the opportunities and challenges for cooperation and collaboration between ASIA and African Nations within an emerging global economic and political order.
The study aims to assess how people in South Africa perceive the impact of the global economic crisis in Southern Africa and particularly the South African economy. From 2009 to 2010 the South African economy entered into a recession because of the global economic crisis, which was caused by the collapse of the United States’ housing market. A survey questionnaire, which aimed to measure the perceptions of the impact of the global economic crisis on the South African economy, was administrated to 300 randomly selected students and staff at two universities and five townships in Cape Town. The research followed the procedure of random sampling with students and staff at two universities in Cape Town, and they were selected by the researcher and fieldworkers on an arbitrary basis. The employed field workers selected persons from townships on the same basis. A survey of the impact of the global economic crisis in South Africa found that a majority of respondents from universities and non-university subjects (170) agreed that the global economic crisis has impacted negatively on the South African economy. Hence, the South African government should carefully improve the policy.
We examine the role of confidence in economic fluctuations. Empirically we examine Granger causality from consumer confidence indicator to growth of economic output in the Czech Republic and the United States. In case of the U.S., we confirmed the causality robustly. In case of the Czech Republic, we found the causality, but not a robust one. Generally, the causality is taken as evidence for macroeconomic models with shocks to consumers's expectations. Recently, these models with unique- equilibrium gain on importance in economic theory. The second focus of this study is the confidence- related part of the financial and economic crisis of late 2000s which made confidence indicators hit record lows. Confidence has been cited as both a source of the crisis and the remedy to the crisis. We analyze such thoughts. One of the main ones is the incorporation of animal spirits into mainstream economomics.
The recent events that brought upon the 2008 Global Economic Crisis have evidenced the importance of transparency and diligence in Corporate Governance practices, increasing the relevance of corporate strategies such as CSR and their impact to the profitability of firms. This book focuses on the relationships between the financial crisis and CSR reporting. We identify the linkages between corporations, their responsibilities, the causes of the Financial Crisis and the evolution of CSR communication. Analyzing if under a Crisis environment corporations act conservatively diminishing their CSR practices, or rather they seize the opportunity to improve their corporate image and generate competitive advantages.
The Developed World has since the early 2000's been affected by the Economic crises have created gaps in their balance sheets. This has been met by developing world's local Non-Governmental Organisations' over dependence on aid and grants support from development partners coming from the same affected countries. This work was aimed at establishing the effects of the global economic crisis on local nongovernmental organizations in Malawi in relation to their financial resources, quality of services and coping strategies in the event of grant reduction or withdrawal. The work was also carried out to establish how Non- governmental Organizations are planning to strengthen social service delivery capacities during the crisis periods. This Book provides an insight into the effects that have been felt by Local Non Governmental Organisations in Malawi which will are aimed at providing recommendations that can be taken aboard by Non governmental organisations in the face of forthcoming economic crises; for their survival and continued relevance.
Greed of financial institutions, poor assessments of rating agencies, massive issuing of insurance for credit risk covering, long-term inadequate monetary policy and poor regulations, on one hand, with simultaneous investments on the basis of wrong assumptions, on the other, are direct causes of financial crisis starting from the American market in 2007. It is concluded that occurred crisis is not a representation of the market or capitalism failure but a correction of market or of wrong market expectations caused by ignorance. After several decades, Keynes and principal postulates of his theory again became dominant and primary, this time, in solving of current economic crisis. If the effects of selected (interventionist) economic policy are negative, then the world will have an additional experience to consider while creating new measures and instruments of economic policy for solving potentially new crises in the future. Expectations related to overcoming the current crisis are different and expectedly, opposed. Optimistic forecasts have been proved wrong. Pessimistic forecasts discourage and do not lead the world economy out of the crisis in the near future.
Corporate reputation management has been broadly discussed in the last decade. Many academics and experts pay attention to model and theory development regarding reputation building and maintenance. However, in modern management there is still no consensus to define the term ‘reputation’. Moreover, very few management experts have studied reputational changes during times of crisis. Thus, this dissertation will analyse existing reputational definitions; explore how crisis affects organisational processes, and activities and how reputation changes during the crisis. The major focus will be on examination of financial indicators and the media communications of BP plc. and ExxonMobil during the crisis in the Gulf of Mexico and Exxon Valdez in Alaska respectively. The research suggests the basic assumption that reputational crisis hits companies in a financial way might not seem correct as the analysis showed that corporate reputation could be damaged while organisational financial performance did not experience difficulties.
The modern world is under the rule of what are widely understood as globalisation processes. Globalisation concerns all areas of life (though not to the same degree) and influences the economic conditions of countries, regions, social groups and the life of every person in various ways. The progressing process of globalisation is one of the most important events in the modern world. It helps the dynamic development of new technologies, bringing changes in the economic and social sphere. These changes are underpinned by what is known as the globalisation of big virtual discoveries of the last quarter of a century. The aim of this book is to analyze the processes of globalisation with particular emphasis on political and economic matters, define the concept of globalisation and to determine a correlation between the perception of globalisation in the strictly economic and political domain. In order to achieve the goal, it is necessary to consider the process of globalization, but also to define the process itself. An indication of the areas of modern civilization in which the processes of globalisation are clearly visible and constitute an integral part of a specific area of life.
A substantial and influential literature demonstrates conflicting evidence that director remuneration is either positively or negatively correlated with corporate performance. In some instances, studies suggested to have no link between director remuneration and corporate performance. Research interest in this topic has been further fuelled with the collapse of many multinational banks during the recent global financial crisis. In this research, a re-examination of the link between director remuneration and firm performance in the big four Australian banks is being conducted. We used both financial data and non-financial data. Financial data is retrieved from databases such as Aspect Fin Analysis and banks’ annual report and non-financial data retrieved from various newspaper and other available publications. Overall this we found there is no relationship between director remuneration and firm performance in the big four banks for the period pre, during or post Global Financial Crisis. These findings also hold true with a lag and lead years and goes on to suggest that the relationship between the director remuneration and performance dosen't forge a link in the long term as well.
The present monograph provides a comprehensive study of recent evolutions and future trends in economics, which is directed towards an ambitious objective: to assess the present state of economic science, particularly in the context of the global crisis. We set out to investigate the most important evolutions which marked economic theory and practice after World War II, and particularly during the past four decades. Theoretical progress has been significant, including such issues as: the micro foundations of macroeconomics, rational expectations, market-clearing models, market imperfections, monetary neutrality or business cycle theories. However, the impact of theoretical progress on policy has been rather low, as economists have not radically changed the way they analyze the economy. The analysis goes on to present the two main streams of thought that dominate current economic analysis – the New Classical School and New Keynesian Economics. In light of recent evolutions, the natural conclusion is that economic science is not going through a crisis, but is rather experiencing periods of slow progress or stagnation, marked by economists' fervent searches for a new paradigm.
The chapters in this book provide a comprehensive analysis of the 2008 - 2013 global financial crisis. The authors are distinguished scholars or members of distiguished financial and economic institutions. Theoretical approaches and practical implications of the global financial crisis starting from 2008 onwards are intertwined within a logical sequence. First part of the book questions the impacts of globalization within the existing capitalist system. Poorly managed globalization triggers financial crisis. Governments must find ways to offset the negative impacts of this poorly managed globalization. Existing capitalism, within this context, is also questioned. Second part concentrates on the debt crisis and regulation of the financial markets in the european context. Regulatory system, banking system, accounting principles and financial crisis relationships are discussed by the authors. Third part consists of the Capital Markets. Last part looks at the state of the Turkish economy giving solid and up-to-date examples from an emerging market.
The crisis is a part of the economic life of society. It represents a moment (a period) of malfunction in the economic activity, which requires viable solutions, meant to assure a change or revitalization of damaged systems and processes. This study is based on the contemporary economic theory, native and foreign, the theory of management, legislative frame of Romania and other official documents, regarding the problems of bankruptcy and anti-crisis management. The basic methodological procedure of the research – systemic approach – allowed the efficient organization of the scientific research and solved the problems suggested. The objectives of this study consist in developing the theoretical-methodological bases of anti-crisis management and the substantiation of mechanisms of perfectioning it in the management of public administration.