What lessons can policymakers draw from our economic past - Essay Example

Download file to see previous pages... Revolution in the late 1970’s, the fiscal crisis that was precipitated as a result of drastically decreased fuel supplies, would likely not have occurred either. Further, the most recent financial collapse of 2007/2008 could have at least partially been prevented was largely the result of incorrect levels of regulations employed to ensure correct levels of debt to equity within the banking systems existed around the globe. As a function of analyzing these three crises and drawing useful inference with respect to how experts and policymakers can engage these lessons to ameliorate such threats, it is the hope of this student that this discussion will be useful with regard to providing useful inference and applicable best practices that can facilitate future decisions.
without question, one of the most impactful economic disasters that has taken place during the course of human history is that of the Great Depression. At the conclusion of the First World War, individuals around the globe began to see a glimmer of hope (Mitchner & Mason, 2013). Seeking to rebuild their lives, engaged in commerce and business, and establish something of a new world order, business rapidly expanded and a renewed level of optimism helped to create and overinflated stock market. Although many individuals, wrongly symptoms that the stock market crash of 1929, also referred to as Black Friday, was responsible for ushering in the Great Depression, it was only one aspect of the that contribute to economic hardships and difficulties that were exhibited over the next decade (Alumnia et al., 2010).
Shortly after the stock market collapse, individuals began to realize that the sheer magnitude of money that was lost equated to nearly $40 billion in 1929 money. As a result of this, a desire to lay hands on material resources and resist any further drops in value or loss to financial instruments created a run on the banks (Andrews, 2013). Due to the fact that banks did not have a requirement ...Download file to see next pagesRead More