FINANCIAL CRISIS: INFLUENCE, CONSEQUENCES AND THEIR IMPLICATION

Financial crisis term used to describe a wide range of situations in which some financial institutions or finds lose immediately a large part of their value. Many economists have offered their theories on how financial crises arise and are developed, what are the causes and their effects and ways to prevent them. But researchers have not yet reached a consensus on these issues, and financial crises still represent a common phenomenon in the world economy. Year 2008 will be remembered as a year that was marked by a financial crisis, which appears once in a century. The crisis caused unprecedented swings on Wall Street, the banking system and shook up scholarships, but also brought radical government intervention. The first signs of the economic crisis were presented in August 2007, but 2008 was the year of the real financial crisis, which brought the economy of the United States, Europe and Japan in recession for the first time after World War II.