FINANCIAL CRISIS AND ITS OVERCOMING
The relation between demand and supply at the world markets has to be balanced involving their mutual concordance with the amount of money. Although, there should be more money and loans than there are international trade and services which guarantees sustainable growth without recessions, depressio...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Banja Luka, Faculty of Economics
2010-06-01
|
| Series: | Acta Economica |
| Subjects: | |
| Online Access: | http://ae.ef.unibl.org/index.php/AE/article/view/198 |
| _version_ | 1818491416628690944 |
|---|---|
| author | Рајко Касагић, PhD |
| author_facet | Рајко Касагић, PhD |
| author_sort | Рајко Касагић, PhD |
| collection | DOAJ |
| description | The relation between demand and supply at the world markets has to be balanced involving their mutual concordance with the amount of money. Although, there should be more money and loans than there are international trade and services which guarantees sustainable growth without recessions, depressions and crises. Aberrations from such basic market laws cause recession. Present recession is the consequence of long lasting violation of basic economic law. Banking, finance, marketing and stock markets are out of control trying to satisfy corporate and political desires. Loans were given which contributed to excessive demand. Technological development provided large series of products. The economy volume was not in compliance with market laws. Marketing asked for greater consumption. Distribution of material goods was not equal, so the buying power of undeveloped countries stayed at the relatively low level. Therefore, growth rate of world economy fell. Danger of crash of investment banks and stock markets after violating economic relations is not doubtful. Domicile countries of big banking and economy systems are trying to protect them by investing from their own sources. And the consequences of current recession are poor globalization process led by rich countries and stoppage of economical growth of poor Asian and African countries. Consequences of world financial crisis will not leave out banks from Bosnia and Herzegovina. Even though banks from Bosnia and Herzegovina are still not in the credit system of world banks, which would be an additional burden to the current crisis, it will reflect indirectly small countries as well as Bosnia and Herzegovina. |
| first_indexed | 2024-12-10T17:30:33Z |
| format | Article |
| id | doaj.art-3fd07dee90e44ee38a88dbf369cbb06f |
| institution | Directory Open Access Journal |
| issn | 1512-858X 2232-738X |
| language | English |
| last_indexed | 2024-12-10T17:30:33Z |
| publishDate | 2010-06-01 |
| publisher | University of Banja Luka, Faculty of Economics |
| record_format | Article |
| series | Acta Economica |
| spelling | doaj.art-3fd07dee90e44ee38a88dbf369cbb06f2022-12-22T01:39:41ZengUniversity of Banja Luka, Faculty of EconomicsActa Economica1512-858X2232-738X2010-06-01812FINANCIAL CRISIS AND ITS OVERCOMINGРајко Касагић, PhD0associate professor, Faculty of Economics, University of Banja LukaThe relation between demand and supply at the world markets has to be balanced involving their mutual concordance with the amount of money. Although, there should be more money and loans than there are international trade and services which guarantees sustainable growth without recessions, depressions and crises. Aberrations from such basic market laws cause recession. Present recession is the consequence of long lasting violation of basic economic law. Banking, finance, marketing and stock markets are out of control trying to satisfy corporate and political desires. Loans were given which contributed to excessive demand. Technological development provided large series of products. The economy volume was not in compliance with market laws. Marketing asked for greater consumption. Distribution of material goods was not equal, so the buying power of undeveloped countries stayed at the relatively low level. Therefore, growth rate of world economy fell. Danger of crash of investment banks and stock markets after violating economic relations is not doubtful. Domicile countries of big banking and economy systems are trying to protect them by investing from their own sources. And the consequences of current recession are poor globalization process led by rich countries and stoppage of economical growth of poor Asian and African countries. Consequences of world financial crisis will not leave out banks from Bosnia and Herzegovina. Even though banks from Bosnia and Herzegovina are still not in the credit system of world banks, which would be an additional burden to the current crisis, it will reflect indirectly small countries as well as Bosnia and Herzegovina.http://ae.ef.unibl.org/index.php/AE/article/view/198marketrecessioneconomyglobalizationfinancial crisis |
| spellingShingle | Рајко Касагић, PhD FINANCIAL CRISIS AND ITS OVERCOMING Acta Economica market recession economy globalization financial crisis |
| title | FINANCIAL CRISIS AND ITS OVERCOMING |
| title_full | FINANCIAL CRISIS AND ITS OVERCOMING |
| title_fullStr | FINANCIAL CRISIS AND ITS OVERCOMING |
| title_full_unstemmed | FINANCIAL CRISIS AND ITS OVERCOMING |
| title_short | FINANCIAL CRISIS AND ITS OVERCOMING |
| title_sort | financial crisis and its overcoming |
| topic | market recession economy globalization financial crisis |
| url | http://ae.ef.unibl.org/index.php/AE/article/view/198 |
| work_keys_str_mv | AT raǰkokasagićphd financialcrisisanditsovercoming |