Economic growth and economic crisis Online publication date: Wed, 17-Jun-2009
by Victor Anderson
International Journal of Green Economics (IJGE), Vol. 3, No. 1, 2009
Abstract: This article argues that the recent financial crisis was caused largely by the long-term problem of the current world economy lacking a sustainable path of development. Limits to growth – expressed principally through rises in the price of oil and other commodities – created a crisis for the global financial system, which has been based essentially on the assumption that economic growth will continue indefinitely. A mismatch was thereby created between the 'real economy' and the finance sector.
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