- April 20, 2012
- Posted by: essay
- Category: Sample essay papers
The recent financial crisis has led to a profound economic recession which affected many countries of the world. In such a situation, it is possible to speak about the economic recession on the global scale, while the role of financial crisis in the aggravation of socioeconomic situation in the world can hardly be underestimated. At the same time, the financial crisis did not occur spontaneously. In stark contrast, it was a result of financial speculations which undermined the stability of financial markets of the USA and, later, other countries, including countries of the EU, Japan and other leading countries of the world. In fact, financial speculations did not simply destabilize the situation on financial markets but they inevitably affected the economic development of the world because financial speculations led to unparalleled fluctuation of prices on strategic products, such as oil and affected the national currency rate, including that of the US dollar which could not remain stable in the context of financial speculations.
Hence, it is obvious that the multiple causes of the current economic recession and financial crisis are strongly backed up by financial speculations as well as activities of hedge funds which also contribute to the growth of financial speculations and destabilized the situation on financial markets worldwide.