Economic Crisis: Challenge for Economic Theory and Policy

Abstract

Crises are truly social phenomenon and that is why they have strategic importance and require increased state regulation. The global economic crisis of 2008 has rapidly mastered the world and significantly affected national economies. The aim is to show that economic crisis has always represented a great challenge for economic theory and policy, and that the theoreticians and practitioners demonstrated the need to create a new model of economic growth and change the dominant theoretical paradigm. There are many findings but the most important ones are as follows: The recent crisis has shown how unregulated market can lead capitalism to its disaster. Neoliberal doctrine had a strong negative impact on policy which helped spread of the crisis. It was a sign that it is necessary to create a new theoretical and macroeconomic paradigm and a new model of economic growth that would be the answer to the recent economic crisis because it has shown that the neoliberal mode of economic policy has been wrong and ineffective in terms of the global economic crisis. In process of continuous global changes, it is necessary to build a stable society, which is going to be humane and socially balanced.

Proceedings of the 7th International Conference on European Integration 2024

“…Due to the deepening globalization of world markets and the multitude of financial and institutional connections, crises affecting most national economies are becoming more and more frequent. Examples include the crisis of the so-called "Asian tigers" of 1997, or the last financial crisis of 2008 (Hadziahmetovic et al, 2018).…”

A Conceptual Analysis of Systematic Barriers for Women Living with HIV/AIDS (WLHA)

“…Keynes believed that economic recessions are not necessarily self-correcting by means of the free market. As such, government intervention is needed to stimulate economic growth by offsetting the shortfall of private investment and consumption spending (Hadziahmetovic et al, 2018). Keynes believes that injecting large amounts of new government spending is the most effective way to stimulate declining economies and prompt a recovery and fuller employment (Sadeh, et al, 2020).…”

What do we know about small and medium enterprises’ survival in a post-global economic crisis context?

“…Economic crises lead to a downturn in product and service demand, and, thus, have negative impacts on the economic development of affected countries (Hadziahmetovic et al, 2018). However, unlike those at a localised national level, global economic crises impact domestic demand and the demand for exported products at the same time, leading to a substantial decline in international trade (Kose et al, 2020).…”