Open AccessA comparative analysis of models selected as a response to the world financial crisis
Author(s) -
Hasiba Hrustić
Publication year - 2009
Publication title -
međunarodni problemi
Language(s) - English
Resource type - Journals
eISSN - 2406-0690
pISSN - 0025-8555
DOI - 10.2298/medjp0903244h
Subject(s) - recapitalization , financial system , market liquidity , financial crisis , recession , finance , business , financial stability , economic recovery , economics , economic policy , macroeconomics
The financial crisis has hit the entire world economy. Many governments have been forced to rescue the financial systems, having as their priority to ensure economic recovery. A number of important measures have been taken to promote financial stability, including injection of capital into financial organizations, a substantial expansion of guarantees for bank liabilities by central banks, the recapitalization and the various liquidity programmes. However, the recovery has required a comprehensive plan to stabilize the financial system and restore normal flows of credit. The ultimate goal of the governments' activities has been to avoid a protracted economic downturn and restore the conditions for economic growth.