Financial Crises: Historical Challenges
The major challenge in the 21st century is globalisation. It is an historical process underpinned by compression, ‘a blurring of national borders,’ interlocking of nations, and mounting transnational relations. However, such a vision may be shattered by economic fluctuations which may be induced by globalisation itself.
In this context this paper using historical political economy explores more fully financial crises or shocks-exemplified by the ‘Great (Gt) Depression’ (1929-33), the ‘Great (Gt) Recession’ ((2008) and its aftermath, and those in the intervening years (1980’s and 1990’s). This unfolds the origin, the impact, and the policies to tackle crises. It emerges that the failure of financial markets and financial transactions impacts adversely on the real economy with resolution through the state and/or the market. This is based on competing ideologies. Insights emerge into overcoming instabilities through collective action.