Global Financial Crisis and Economic Sustainability in South East Europe

Global Financial Crisis and Economic Sustainability in South East Europe

ASLAN, Nurdan
TERZI, Nuray

The global financial system has witnessed rapid growth and substantial structural change during the last ten years leading to globalization of financial markets. The integration of financial markets has accentuated the rapid flow of capital across borders as well as magnified the contagious effects of financial crisis with wide implications for transmission of financial policies on the domestic economy and internationally. The global financial crisis has become a major international event and has spread to developing countries through trade linkages, a reduction of FDI and remittances, and a collapse in commodity prices. The effect of the global financial crisis was worsened by rising global energy prices which pushed up inflation. The global financial crisis has evolved differently from other major crises that have hit the developing world. This paper analyzes the economic sustainability in South East Europe against global financial crisis.

Conference or Workshop Item
PeerReviewed

2009-06

127