GLOBAL ECONOMIC CRISES: CAUSES AND CONSEQUENCES

Abstract

The article is devoted to topical issues of determining the causes of global economic crises and their consequences. The economic crisis is characterized by a sharp deterioration in the country's economic condition. The consequences of the crisis are manifested in a significant decline in production, an increase in unemployment, a decrease in the standard of living and well-being of the population. The article examines and analyzes the history of development and prerequisites for the emergence of world crises. It is noted that the development of the economy is cyclical, and the fundamental phase of the entire economic cycle is the crisis. The analysis of the works of well-known economists on the nature of the occurrence of economic crises is carried out. Almost all the leading areas of macroeconomic analysis presented their vision of the nature of phenomena that form cyclical fluctuations in a market economy. The main scientific approaches to revealing the essence of the economic crisis are identified. The definition of an economic crisis as a deterioration of the country's economy, which reduces macroeconomic indicators, is proposed. It is noted that a significant part of specialists pay attention to the study of processes in the medium and long term. The role of global economic crises in the formation of basic trends in long-term economic development is determined. Attention is paid to the main types of crises based on their classification. Theories explaining the causes of economic cycles and crises are considered. Representatives of different theories Note different causes of economic cycles and crises. These can be external and internal factors, as well as their totality. The consequences of the global economic crisis are: the depreciation of a significant part of financial capital, the devaluation of the dollar and the loss of its status as the world's only reserve currency. The consequences of a crisis depend on the effectiveness of crisis management, which can either mitigate or exacerbate the crisis. It is noted that if sufficient attention is not paid to the analysis, research and prevention of the spread of global crises, then cases of local and regional crises developing into global ones are possible.