Romanian Journal of European Affairs (Sep 2009)
THE CRISIS GOES ON: HOW TO RESPOND?
Abstract
The world seems to suffer the first crisis of the globalization. Prior to this, individual country or regional experience has been accumulated on financial crisis, which taught policymakers how to design remedial policies, but there has not been a World financial crisis in most people living memory. The most developed economies have witnessed less ambitious economic cycles while financial cycles have not calmed down, but had even grew. The impact of this financial instability with the economic growth is a potential risk which will never be underestimated in the future. Current national or G-20 responses to the crisis have started to reshape the global economy and to shift the balance between the political and economic forces at play in the process of globalization. We should look equally to the imbalance of the dynamism of financial leverage versus poor regulation, as to the disequilibria issued from financial globalized markets politically addressed with a constellation of conflicting national regulations. The major quest now is the need for a reconciliation of the democracy with the market. People has been largely disappointed by the freedom that some financial instruments played only to the aim of raising profits, while elected politicians were lately asking for more taxes to protect deposits. Hence, no further political debate will leave aside those matters. Both at home and international.
