Government Role During the Global Financial Crisis

World Research Journal of Economics ISSN: 2277-6028, Volume 2, Issue 1, 2013, pp. 13-21

9 Pages Posted: 18 Nov 2013

See all articles by Elvin Alirzayev

Elvin Alirzayev

Qafqaz University

Elchin Suleymanov

Baku Engineering University - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2013

Abstract

In this study we investigated government hand in the Global Financial Crisis. Before, during and after crisis government attempted to solve and avoid the turmoil. But did he succeed? Beginning with low interest rates set by FED, US government political pressures to enable more Americans to buy homes, unrestrained financial system despite of regulations and fines, human greedy were the main reasons for Great Recession. More than 30 years of deregulation and reliance on self-regulation by financial institutions was the one big reason for crisis. Besides showing the stages crisis passed, the paper also examines penalties government gave to the financial intermediaries for breaking law in past related to crisis. Showing the emerging process of crisis, the article mainly restricted on US economy - where was the epicenter of problem - and government, while the U.S. financial system stumbles, it may take the rest of the world down with it.

The actuality of the topic is that it was also a social crisis because, unemployment in US had reached to 50 millions which means they also lost their social insurances, and 16 million families had lost their homes. Several corporations bankrupted, in spite of more than these were saved by government. While financial crisis turned into social and economic turmoil it became government prior issue to solve.

Keywords: Global Financial Crisis, US economy, government failure, crisis recovery

JEL Classification: H30, G01, G18, G28, H12, H81

Suggested Citation

Alirzayev, Elvin and Suleymanov, Elchin, Government Role During the Global Financial Crisis (November 1, 2013). World Research Journal of Economics ISSN: 2277-6028, Volume 2, Issue 1, 2013, pp. 13-21. Available at SSRN: https://ssrn.com/abstract=2355981 or http://dx.doi.org/10.2139/ssrn.2355981

Elvin Alirzayev

Qafqaz University ( email )

Baku-Sumgait Highway 16-km Khirdalan,
Khirdalan, AZ0101
Azerbaijan

Elchin Suleymanov (Contact Author)

Baku Engineering University - Department of Finance ( email )

Baku Sumgait Road 16th km. Hasan Aliyev Str. 120
Baku, AZ0101
Azerbaijan

HOME PAGE: http://beu.edu.az/en/staff_directory/staff/elsuleymanov

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