Global Financial Crises: Cause or Inequality?

The financial crisis is thought to be a complex phenomenon, and several reasons for this are verification of this complexity. Compared with the Great Depression in 1929, since the middle of 2007, the world economy had to overcome what has been regarded as the most deadly global financial crisis in history and economic downturn (Eichengreen and O'Rourke, 2009). As the crisis began to spread to many economies and countries, some of the best and most respected banks and insurance companies declared that they were bankrupt or need financial assistance.

The worldwide critical financial crisis that causes widespread disarray, long-term economic problems, and social instability is rare. In the 1970s, such as Latin America and Russia, the "normal" economic recession from the 1980s to the early 1990s, and even the Asian crisis, the recurrent crisis of Central and South America and Russia, the shock of oil price, There are also people who brought it. Late in the 1990s. The two most recent global critical crises were the Great Depression of the 1930s and the global financial crisis that began in 2007.

The 2007 - 2012 financial crisis occurred primarily in the US due to the subprime mortgage crisis and then evolved into the euro area sovereign debt crisis. As the degree of globalization of the financial sector increases, this spread has begun a series of economic ways to help the economy get out of recession. The FRB and the European Central Bank play a similar role in their respective economies. They are responsible for the monetary policy of their respective economies, such as maintaining their own currency, managing the interest rates of subsidized loans, and providing liquidity to banks through bond production funds. Trade or other means (Elbert) In order to properly analyze, this article compares the European Central Bank with the FRB between the 2007-2009 global crisis and the more euro-centric crisis of 2010 - 2012 . The financial crisis of 2007-2009 is often regarded as the worst financial crisis since the Great Depression from 1929 to 1933.