Rostov-on-Don Department of education Gymnasium 34 Vladislav Pismenskiy Form 10 “Б” Research project in English Science Topic : Global Financial Crisis (GFC) or the "Great Recession“ Project supervisor : Dolgopolskaya I.B. 2012

markets
Global effects
Stabilization
Economic forecasting and media coverage
Conclusion

Outline

Depression of the 1930s by many economists.

Problem

touch. That’s why changes both in global economic relations and in the economy of a definite state and defining of the directions of further economic development have become urgent.

Actuality

which some financial institutions or assets suddenly lose a large part of their value.

Financial crisis. What’s this?

system of the USA. It concerned valuation and liquidity problems but the roots go back to 2007 which is considered to be the peak of housing bubble.

lost more than $1 trillion on toxic assets and from bad loans from January 2007 to September 2009.
One of the first victims was Northern Rock, a medium-sized British bank.

Impact on the financial markets

than 10% in 2007 to close to zero in 2009.
This has stark implications and has led to a dramatic rise in the number of households living below the poverty line.
Bangladesh - 300,000;
Ghana - 230,000.

Global effects

according to U.S. National Bureau of Economic Research (NBER) and the financial crisis appears to have ended about the same time.
Nevertheless, the lack of fundamental changes in banking and financial markets, worries many market participants, including the International Monetary Fund.

Stabilization

instead spoke of the Great Moderation. A number of economists predicted the crisis, with varying arguments.
A cover story in BusinessWeek magazine claims that economists mostly failed to predict the worst international economic crisis since the Great Depression of 1930s.
Within mainstream financial economics, most believe that financial crises are simply unpredictable.
Lebanese-American trader and financial risk engineer Nassim Nicholas Taleb warned against the breakdown of the banking system in particular and the economy in general owing to their use of bad risk models and reliance on forecasting and framed the problem as part of "robustness and fragility".

Role of economic forecasting

has generated many articles, books, films etc. Trying to find the reason, the ways out of the crisis and those who are to blame for it.
For example, Time Magazine named "25 People to Blame for the Financial Crisis"

Media coverage

at an anti-crisis summit. Following the working session, the summit adopted a declaration in which general principles for reform of financial markets, the restructuring of international financial institutions, the obligation to refrain from the use of protectionist measures were proclaimed.

Joint action of financial and political authorities

its consequences and mainly the fact that the stabilization and further development of financial market is possible only by joint efforts of all the leading economies.
But the crisis turned out to be not so deep and the global financial system didn’t undergo crucial changes thanks to the interference of the state into the financial market.
Though, not all the reasons were done away with economies of leading states still live under threat of the following crises.

Conclusion