Global economic crisis 2007–2010: Is it really so recent? Implications for the future from the lessons of economic history
by Ioannis-Dionysios Salavrakos
International Journal of Economics and Business Research (IJEBR), Vol. 3, No. 6, 2011

Abstract: This paper demonstrates that the current economic crisis has its roots in the evolution of the global economy during the 1960s. The gradual increase of US debt from the 1960s accompanied by the deficit in the US trade balance due to international competition from EU, Japan, and later from China and the other emerging economies had played a pivotal role in the current crisis. Furthermore, the transformation of the international financial markets and the shift from financing real foreign direct investment projects to finance mainly high-risk high-return portfolio investments has also created long-term harmful effects for the global economy. In addition, the inability of the EU to establish an optimal currency area has generated additional instability in the international economic system. This paper argues that the current crisis is the outcome of deeper institutional rigidities, when compared with past crises, and thus the whole global economic status is at risk.

Online publication date: Wed, 22-Apr-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com