Title: Financial Crisis and Bubbles: Its Origin and Implications from the Global Perspective
Abstract: The verbal connotation of the word ‘crisis’ implies some unforeseen contingencies which take place all on a sudden and creates adverse impact to the environment. The statement may be inferred to the internal and external environment of an organization or economy of a nation or from the macro perspective of the global financial market. The terminology ‘market’ has larger connotations. When market is defined from the perspective of the Marketing Management, market is considered to be physical location where buyers and sellers interact with each other and mutually exchange their need and wants. Same terminology market can give different dimension if it is looked from the economic and financial aspect. Here market can be interpreted as mechanism where forces of the market such as demand and supply can interact with each other. The market can be decomposed into mainly two broad categories such as financial market and physical market. Financial market includes money market, debt market, equity capital market, derivative market and currency market. Physical market incorporates commodity market which is composed of basic food grain commodity, oil and gold and bullion as well as real estate market. Just like a product and business, movement of the market also follows cyclical nature. Market has both its boom and recession period as well as it has simultaneously its peak and trough point. The most difficult and challenging job is timing the market. Several research precedence are there by eminent economists, veteran expert of finance as well as globally reputed academicians to address this problem by formulating different tools, techniques ,models and analytical framework. Still it is matter of fact that movement of market remains unpredictable to a significant extent for the all participants and stakeholders of the market. When market is growing, operating at an expansion phase, all economic variables such as income, output and employment are performing satisfactorily, everything goes fine. Once the cycle reverses and economy starts to move in reverse gear, problem aggravates and it creates bolt from the blue for majority of the market participants. This article will focus some on some major financial crisis which the entire globe has faced in the last century.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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