ECONOMIC CRISIS: LESSONS AND CONCLUSIONS

Radičić Dragana M. (Erste banka, A.D. Novi Sad), radicicdragana@yahoo.com

The first decade of the 21st century has made us witnesses the worst economic crisis unlike any seen before since the Great Depression. Although it initially seemed a simple problem of liquidity that culminated at the time, over the years has been discovered the real reasons of the crisis that has hit the world economy and they are increasingly refer to serious deficiencies and unsustainability of the existing financial system as a whole. Economic downturn resulted in lower than expected fiscal revenues, while the other side, expenses increased as a result of a large fiscal intervention in orderto stabilize the financial and banking sector and boost aggregate demand. The latest budget projections indicate the growing fiscal imbalances on a global scale as well as unsustainable imbalances in the global economy in general. Creating a credible strategy for getting out of the crisis, policymakers are faced with an extraordinary challenges. European Union member countries are now implementing an economic recovery plan that represents the most ambitious effort ever to align their economic policies. Although the crisis has put a serious burden on the economies and the budgets of the Member States, the European Union, implementing number of common measures, has managed to avoid the collapse of the financial system.

Keywords: European union, global crisis,ressecion, global imbalances, monetary and fiscal policy, gross domestic product, budget deficit, fiscal consolidation, public debt, unemployment