GLOBAL FINANCIAL CRISES AND THEIR EFFECTS ON ECONOMIC STABILITY ACROSS DIFFERENT COUNTRIES
Thomas Kumar
Commerce
December 2023
The global financial crisis of 2007–2008 and the Asian financial crisis of 1997–1998 both had significant effects on economies and society throughout the globe, which are the subjects of this research. The collapse of the hot money bubble gave rise to the Asian Financial Crisis, which started in Southeast Asia and resulted in severe economic contractions, stock market crashes, and currency devaluations in the afflicted nations. This crisis had an impact that went beyond Asia, causing political instability and inciting anti-Western sentiment. Because of the interconnection of financial markets and trade channels, the global financial crisis, which was first caused by the collapse of subprime mortgage loans in the United States, spread around the world. Especially in the US, it resulted in a severe fall in economic activity, a significant loss of jobs, and protracted economic downturns. The interdependence of the world's financial institutions and the need of concerted governmental actions to lessen their effects are highlighted by both crises. In summary, in order to create resilience against future crises and guarantee shared prosperity for everyone, it is imperative that the core causes of financial instability be addressed, regulatory changes be supported, and inclusive economic development be fostered
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