Financial Crisis

Introduction
According to Kunt et al. (2011:240) financial crisis is an event in which substantial losses at financial institutions and/or failure of these institutions cause, or threaten to cause, dislocations to the real economy, measured in terms of output foregone. Global capital markets pose the same kinds of problems that jet planes do. They are faster, more comfortable, and they get you where you are going well. But the crashes are much more spectacular. Financial crisis has put a mass hindering thin route on the actual economy, labour markets and the profound mental layers of society, even as some fraction of the world economic elites act as if nothing has occurred.
The structural adjustment to the new world order being finally born in this crisis will need two decades at the very minimum implying that it takes fairly a very long time. The dual crisis of information and capital that is now leaving an imprint on the first decade of this century is paving a new geopolitical space, although it is something we clearly do not yet know fully.
John Maynard Keynes, a British economist who was a relatively strong advocate of free markets held a major policy view that the way to stabilise the economy is to stabilise the price level, and that to do that the government’s central bank must lower interest rates when prices tend to rise and raise them when prices tend to fall. He also considered a world reserve exchange, a similar worldwide link between debtors and creditors, and an ethical answer to the challenges of the crisis. Even if Keynes discovered unrealized ideas it is not considered enough.
On the other hand, it is inadequate to blame the financial insider class for taking excessive risks that the society has to pay for in t...

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...arting to get back their place in the global order.
For Europe the assemblage of geo-regionalism is a new chance as Europe is more an association of societies than just an amalgamation of states. But Europeans will only be able to take this chance if it dispose of the seductive idea of becoming the third hegemonic (dominant) global power – alongside the US and China and instead devote itself in supporting the development of a new Second World
In conclusion things are changing and societies have to set up favourable infrastructures to adapt to the change that is, there might be invisible potential afar from the catastrophe.

Works Cited

Kunt, A.D, Evanoff, D.D, Kaufman, G.G (2011) The International Financial Crisis: Have the Rules of Finance Changed?; London, World Scientific
http://www.aljazeera.com/programmes/insidestoryamericas/2013/03/201331984155417177.html