• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Article

The current financial and economic crisis as a new stage of transformation of the global economy

Koshovets O. B., Igor E. Frolov.

It is now widely accepted that modern economic science failed to foresee the financial and economic  crisis of 2008-2009. However it is appear that there is still a lack of understanding fundamental  causes of this crush and its aftermath. The available standard forecasting models and theories for the  growth of the global economy are barely able to make correct forecasts in a crisis period and treat  this crisis as a cyclical one. Moreover the nature of this crisis and its long-run effect on the global  economy cannot be grasped within Keynesianism and neoliberalism, which prevail in economics and  policy makers` discourses. The authors argue that today`s crisis is not a regular cyclical one. It is of  systemic nature and in fact has been provoked by a surplus of financial rather than productive capital.  The current conditions of the global economy development deeply impacted by the crisis of 2008-2009  have the character of restructuring the entire economic system and economic relations. Actually, this  crisis has to form a new the 21st century global economy and to destroy the old economic, financial  and technological relations. It is very likely that period from 2014 to 2016 will be marked by a new  phase of the global economy transformation towards the building of new types of financial and  economic relations, as well next wave of crisis phenomena will occur.