FINANCIAL CRISIS AND ITS OVERCOMING

Authors

  • Рајко Касагић, PhD associate professor, Faculty of Economics, University of Banja Luka

Keywords:

market, recession, economy, globalization, financial crisis

Abstract

The relation between demand and supply at the world markets has to be balanced involving their mutual concordance with the amount of money. Although, there should be more money and loans than there are international trade and services which guarantees sustainable growth without recessions, depressions and crises. Aberrations from such basic market laws cause recession. Present recession is the consequence of long lasting violation of basic economic law. Banking, finance, marketing and stock markets are out of control trying to satisfy corporate and political desires. Loans were given which contributed to excessive demand. Technological development provided large series of products. The economy volume was not in compliance with market laws. Marketing asked for greater consumption. Distribution of material goods was not equal, so the buying power of undeveloped countries stayed at the relatively low level. Therefore, growth rate of world economy fell. Danger of crash of investment banks and stock markets after violating economic relations is not doubtful. Domicile countries of big banking and economy systems are trying to protect them by investing from their own sources. And the consequences of current recession are poor globalization process led by rich countries and stoppage of economical growth of poor Asian and African countries. Consequences of world financial crisis will not leave out banks from Bosnia and Herzegovina. Even though banks from Bosnia and Herzegovina are still not in the credit system of world banks, which would be an additional burden to the current crisis, it will reflect indirectly small countries as well as Bosnia and Herzegovina.

Downloads

Download data is not yet available.

References

Ранковић, Ј. Управљање финансијама предузећа. Београд: 1992.

Musgrave, Richard. Теорија јавних финансија. Београд: 1973.

Rossle, W. Die financielle Fuhrung der Unternehmung. Westdeutscher verlag, Opladen, 1973.

Keller, J. Die Liguiditat der industriallen unternehmung, Zurich. 1946, prema Witte, Eberhard. Die Liguitaspolitik der Unternehmung, J.C.B. Mohr Verlang, Tubingen, 1963.

Фрик, Реинер. Глобална економија. Осло: 2004, превод Иван Рајић, Београд, 2006.

Дагенс, Нерингслив (Привреда данас), 31. децембар, 1994.

Wolf, Martin. Whu Globaliyation Works. Hew Haven: Zuale University Press, 2004.

Енциклопедија лексикографског завода, том 5. Загреб, MCMLXIX,

Зборник економског факултета, Загреб, 3, 2005.

"Лидер", Пословни рјечник, 28.11.2008.

http: www.liderpress.hr/Deufalt,aspx?sid=60987

НИН бр. 3019, од 6.11.2008.

НИН бр. 3021, од 20.11.2008.

НИН бр. 3022, од 27.11.2008.

Downloads

Published

2010-06-30

How to Cite

Касагић, Р. (2010). FINANCIAL CRISIS AND ITS OVERCOMING. Acta Economica, 8(12), 257–268. Retrieved from https://ae.ef.unibl.org/index.php/AE/article/view/198

Issue

Section

Review article