CONSIDERATIONS REGARDING THE EMERGENCE OF THE TWO TYPES OF CRISIS - THE FINANCIAL CRISIS OF 2008, THE PANDEMIC CIRSIS - COVID-19
Autor (i): Florina Popa
JEL: E60, G01.
Cuvinte cheie: financial crises of 2008, pandemic crisis ? COVID 19, opinions, differences, similarities.
Abstract:
The specialized literature has a rich area of studies regarding the financial crisis of
2008 and the pandemic - COVID-19 – the comparative elements with reference to the form of
manifestation and their consequences, also, being significant,The financial crisis of 2008
originates in the large financial centers of developed countries, the situation of the financial
markets deteriorating strongly, since September 2008, along with the bankruptcy of the
American Investment Bank Lehman Brothers. There have been a series of imbalances that
propagated, over time, also in the economies of developing countries, with different forms of
manifestation, given the specific character of each country and category of
population.Compared to the crisis of 2008, the current pandemic crisis has its origin in a
health crisis with the consequence of economic repercussions, whose propagation occurred
suddenly, with negative effects worldwide. This form of crisis generated by the spread of the
Coronavirus had negative effects that affected the activities of many sectors: the health
system, the chain of purchases and sales, the restriction of production or the temporary
suspension of the activity of some industrial branches, the sector of Small and Medium
Enterprises and other fields: trade, tourism, transports. This experienced a wide, rapid
propagation, with a radical impact on the economy, stopping the activities of some economic
operators, shortly, becoming a global phenomenon, with an impact on the world's economies.
The financial crisis that began in 2008 manifested itself through the disruption of the
financial system and real estate markets in the USA, having a relatively slow propagation,
globally, compared to the COVID-19 pandemic. In the pandemic crisis, differently from the
global crisis, the policies, measures and strategies applied, in economic terms, aimed, among
other things, at limiting the bankruptcy of companies, reducing losses and unemployment, and
were also accompanied by health aspects. The constraints that appeared in the financial
crisis of 2008 were the consequence of the deterioration of the financial system, a situation
different from the crisis caused by the COVID-19 pandemic, whose determinant factor was
the spread of the coronavirus, having consequences in health, economic and social plan. The
present study tries to present some aspects noted by the specialized scientific literature,
regarding the origins and consequences caused by the two types of crisis, as well as the
aspects that differentiate them but also similarities. Also, some opionis have been reported
according to which the effects caused by the pandemic crisis, at the level of economies, are
less severe than those of the global financial crisis and induce a lower risk of recession
emergence, compared to those caused by the global financial crisis. There are also opinions
that consider that the current crisis has severe effects on the world's economies. The
conclusions drawn note that although there were similarities in the reaction of the world's
governments to the current crisis, it can be stated that the measures applied to save their
economies consisted of a set of more extensive initiatives, interventions and resources than
those applied in the crisis of 2008, these being motivated by the high degree of propagation of
the current crisis. The research methodology used consists in documentation from the
specialized scientific literature, summarizing and processing through own interpretation of
the ideas and ensuring the coherence of the ideas in an original formulation.
The specialized literature has a rich area of studies regarding the financial crisis of
2008 and the pandemic - COVID-19 – the comparative elements with reference to the form of
manifestation and their consequences, also, being significant,The financial crisis of 2008
originates in the large financial centers of developed countries, the situation of the financial
markets deteriorating strongly, since September 2008, along with the bankruptcy of the
American Investment Bank Lehman Brothers. There have been a series of imbalances that
propagated, over time, also in the economies of developing countries, with different forms of
manifestation, given the specific character of each country and category of
population.Compared to the crisis of 2008, the current pandemic crisis has its origin in a
health crisis with the consequence of economic repercussions, whose propagation occurred
suddenly, with negative effects worldwide. This form of crisis generated by the spread of the
Coronavirus had negative effects that affected the activities of many sectors: the health
system, the chain of purchases and sales, the restriction of production or the temporary
suspension of the activity of some industrial branches, the sector of Small and Medium
Enterprises and other fields: trade, tourism, transports. This experienced a wide, rapid
propagation, with a radical impact on the economy, stopping the activities of some economic
operators, shortly, becoming a global phenomenon, with an impact on the world's economies.
The financial crisis that began in 2008 manifested itself through the disruption of the
financial system and real estate markets in the USA, having a relatively slow propagation,
globally, compared to the COVID-19 pandemic. In the pandemic crisis, differently from the
global crisis, the policies, measures and strategies applied, in economic terms, aimed, among
other things, at limiting the bankruptcy of companies, reducing losses and unemployment, and
were also accompanied by health aspects. The constraints that appeared in the financial
crisis of 2008 were the consequence of the deterioration of the financial system, a situation
different from the crisis caused by the COVID-19 pandemic, whose determinant factor was
the spread of the coronavirus, having consequences in health, economic and social plan. The
present study tries to present some aspects noted by the specialized scientific literature,
regarding the origins and consequences caused by the two types of crisis, as well as the
aspects that differentiate them but also similarities. Also, some opionis have been reported
according to which the effects caused by the pandemic crisis, at the level of economies, are
less severe than those of the global financial crisis and induce a lower risk of recession
emergence, compared to those caused by the global financial crisis. There are also opinions
that consider that the current crisis has severe effects on the world's economies. The
conclusions drawn note that although there were similarities in the reaction of the world's
governments to the current crisis, it can be stated that the measures applied to save their
economies consisted of a set of more extensive initiatives, interventions and resources than
those applied in the crisis of 2008, these being motivated by the high degree of propagation of
the current crisis. The research methodology used consists in documentation from the
specialized scientific literature, summarizing and processing through own interpretation of
the ideas and ensuring the coherence of the ideas in an original formulation.
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