Financial Crises and Their Impacts on Global Economies: Lessons from the 2008 Financial Crisis

Abstract

A reassessment of financial institutions, regulatory frameworks, and macroeconomic policies all over the world was prompted by the global financial crisis that occurred in 2008. This crisis is considered to be a watershed point in the history of the economy. in order to provide light on the effects that the financial crisis of 2008 had on economies throughout the world and the steps that were taken to alleviate those effects, the causes, repercussions, and lessons gained from the crisis are discussed. The paper examines the dynamics of financial crises, the transmission channels of crisis contagion, and the responses of policymakers, central banks, and international organisations to restore financial stability and stimulate economic recovery. The paper draws on economic theory, empirical evidence, and policy analysis to conduct its analysis. In addition, the paper investigates the long-term implications of the financial crisis that occurred in 2008 for financial regulation, monetary policy, fiscal policy, and international cooperation. It emphasises the significance of gaining knowledge from previous crises in order to construct financial systems that are more resilient and sustainable in the future.