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Global Economic Crisis and Government Intervention

Author

Listed:
  • Claudia I. Dobre

    (Ovidius University of Constanţa)

  • Costin I. RăsăuÅ£eanu

    (Ovidius University of Constanţa)

Abstract

The new economic context which brings into discussion the state’s role in the economy is theresult of several factors, all contributing to the emergence and spread of the crisis. What doeshistory have to say about the political and economic after-effects of financial crises? There areclear similarities between the 1929-1935 and 2007-2009 crises in terms of initial conditions andgeographical origin. In each one of the cases, the financial pain at the root of the crisis wasfollowed by a deep recession in the real economy, but the most devastating impact of the globalcrisis was the human suffering. So, the society changed its vision of business legitimacy, calling forstructural changes in the system, including increasing government influence in economy. In thissense, structural policies are the best option for long-term recovery after the event of a crisis.

Suggested Citation

  • Claudia I. Dobre & Costin I. RăsăuÅ£eanu, 2016. "Global Economic Crisis and Government Intervention," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 14-19, February.
    • Handle: RePEc:ovi:oviste:v:xvi:y:2016:i:2:p:14-19
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    References listed on IDEAS

    as
    1. Funke, Manuel & Schularick, Moritz & Trebesch, Christoph, 2016. "Going to extremes: Politics after financial crises, 1870–2014," European Economic Review, Elsevier, vol. 88(C), pages 227-260.
    2. Atif Mian & Amir Sufi & Francesco Trebbi, 2014. "Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 1-28, April.
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    More about this item

    Keywords

    crisis; interventionism; structural policy;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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