The credit crisis, also known as the credit crunch or credit crisis, is to reduce the overall availability of loans or credit, or a sudden tightening of the conditions necessary to obtain credit from banks. Credit crisis usually involves the reduction of credit availability depends on the growth of official interest rates. In such situations, the relationship between the availability of credit and interest rates has implicitly changed, such that any credit becomes less available at any time the official interest rate, or it ceases to be a clear relationship between interest rates and credit availability (ie, credit rationing is ). Many times, the credit crisis is accompanied by a flight to quality by lenders and investors as they seek less risky investments are often at the expense of small and medium enterprises.
Financial market operations intervened several financial years. The most important were the Great Depression in 1929-30, the 1970's inflation crisis, the banking crisis in 1990 and the current economic slowdown. In 2007, the current financial crisis arose. However, its roots can be traced back much earlier than in 2007. Many experts describe the current, rigid, and the biggest crisis like this does not only affect the banking sector, but also touched on the economy.
Here, I have discussed the causes of the global financial crisis and its impact on the global economy. Given that this recession was one of the most difficult periods of history that most of today's financial markets, a number of important steps have been taken by various Governments to control it, however, the crisis is still there, and countries must take urgent action. While it may take considerable time before financial markets return to its normal, I believe we need fundamental changes in the structure of our economy and its activities with the appropriate regulatory mechanism to ensure that the crisis of this magnitude do not happen in future again .
The value of the financial sector on economic growth prospects of Finance is the backbone of any country or organization, but its role in economic growth is always discussed. Some economists argue that it has no contribution to economic growth and others believe that the key to economic growth. Given that economic growth without development does not cost anything, economists now believe that the concept of sustainable development and achieving higher standards of living is the most important issue. However, there are a lot of debate about the role of the financial sector in economic growth is two key factors influence economic growth are: • Technological change capital accumulation of technological change to develop new products and better ways of producing goods and services.
Capital Accumulation Is The Increase In Capital Resources
Some economists believe that the financial sector has no role in promoting economic growth; on the other hand others say the financial sector of the pioneers in the development of the economy. “Joan Robinson (1952 ...