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Consequences and possible solutions of financial crisis

Author

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  • Alexandra ADAM

    (The Bucharest University of Economic Studies)

  • Silvia Elena IACOB

    (The Bucharest University of Economic Studies)

Abstract

Financial crisis do not end overnight, but it takes some time until all effects disappear. Most of the time, the period in which the consequences of financial crisis manifest is characterized by: persistent and deep collapses of stock market, deep cuts in production and employment and explosions of government debt whose main cause is, actually, the inevitable fall of tax revenue suffered by the State as a result of deep and prolonged output contractions in the economy. Thus, in this article we want to analyze the main consequences of the financial crisis and possible solutions offered by international institutions, especially monetary and fiscal policy decisions.

Suggested Citation

  • Alexandra ADAM & Silvia Elena IACOB, 2012. "Consequences and possible solutions of financial crisis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(12(577)), pages 142-148, December.
    • Handle: RePEc:agr:journl:v:12(577):y:2012:i:12(577):p:142-148
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    References listed on IDEAS

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    5. Philip Lane, 2010. "Some Lessons for Fiscal Policy from the Financial Crisis," The Institute for International Integration Studies Discussion Paper Series iiisdp334, IIIS.
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