The financial & economic crisis of 2008 and its impact in the global economy and world trade

Abstract

The Financial and Economic Crisis of 2008-2009 is considered the most severe and persistentcrisis since the Great Depression. What started as a crisis in the sub-prime mortgage USmarket, soon developed into an International banking crisis, followed by a global economicdownturn. The result was the decline of global output and the ‘collapse’ of internationaltrade. The world was presented with a number of problems to solve and measures need tobe introduced rapidly to prevent further damage. In our study, we will make an attempt tomake an extensive analysis of the latest crisis, its implications on the world trade and thishas affected the global economy.Our primary focus will in Europe as it is the biggesteconomy and the bigger trade partner on the global stage.