THE CREDIT CRUNCH: REFLECTIONS, ANALYSIS AND SUGGESTIONS

Abstract

The credit crises are the consequences of demonetization process failure of MONEY-LIABILITY. To initiate a treatment of this process more "overshadowed" by the financial-banking system, it is required a comprehensive analysis of GLOBAL DEBT; GLOBAL GDP and the ratio between them called "FINANCIAL LEVERS" [3]. The "malfunctions" of DEBT monitoring process are random, but in principle can be formalized by setting them based on statistical probability of credit crisis in the last 100 years [7, 8].

Keywords

• credit crunch
• money
• debt
• financial system
• banking system
• gross domestic product
• financial leverage.