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The paper offers a general overview of situation during the two crises, Great Depression and Great Recession for some of the South East European countries. It studies the linkage between financial issues and economic development by making a comparison of two periods. This paper provides a review of the theory behind the ties of these two components and the channels they affect each other. Both crises have had deteriorate effects in the SEE countries but often this group of countries have had symmetric hits, which leads to the idea of acting as a common region. As a main recommendation we emphasize the collaboration of countries by making similar reforms and moving together in standards achievement to the process of being part of EU, if it remains to be an objective, or constituting a “uniform” and compact competitive region. DOI: 10.5901/ajis.2013.v2n9p706

A Historical Perspective of Economic and Financial Stability in South East Europe