Present Issues of Global Economy

Vlad Costicã () and Mitea Neluþa ()
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Vlad Costicã: „Ovidius” University of Constanþa
Mitea Neluþa: “Andrei ªaguna” University Constanþa

Ovidius University Annals, Economic Sciences Series, 2011, vol. XI, issue 1, 2297-2302

Abstract: The present financial crisis is the result of the „cheap money” philosophy put in practice at the beginning of the milennium by the national American Reserve. In a globalised world both the benefits as well as the risks are rapidly transmitted on a large range causing either positive or negative effects. The most important constant fact is that real risks for the world economy have been identified in real time but they, also, have been, for various reasons, ignored. As a consequence, it appeared the most severe world crisis and it is estimated that its effects will be present for a long period of time. Paradoxically, ostensibly, the most serious effects appeared in the most developed economies as a consequence of interdependence ties of the financial marquets with the American market. The second part is about the structural crisis from Romania and the conclusion is that no matter of the international context, the crisis would have manifested itself. The analysis of the crisis evidenced the necessity of a radical reorganization for the global financial system and for Romania the reorganization on strict scientific bases of the whole social-economical environment. The next challenge is the permanent adjustment of the equillibrium between state regulations and free initiative.

Keywords: Financial crisis; Structural crisis; Subprime credits; Cheap money; Adjustment mechanism. (search for similar items in EconPapers)
JEL-codes: F30 G01 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:11:y:2011:i:1:p:2297-2302

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