The 2008 global crisis led to a recession in most developed countries, and the level of stress on financial markets reached quite high levels. The risk of economic collapse is currently hanging with the sword of Damocles not only over the private sector, but also over entire states, many of which have significant external and internal debts. In this regard, the world's financiers have developed a number of strategies to prevent the crisis.
Instructions
Step 1
Remember that only tough measures can contain the impending crisis. However, they affect the decline in production volumes, which in turn negatively affects the economy. Therefore, it is necessary to organize a network of banks aimed at financing a certain state structure and provide a short-term stimulus for development.
Step 2
Implement credit easing, as excessive debt and business failures remain the main problem, and monetary policy has limited leverage. The ideal option would be revised by the European Central Bank of its decision to increase interest rates, since practice has shown that this only worsens the economic situation in many countries. This leads to a downturn in business activity, which has a deflationary impact on the market for goods, labor, sales and real estate.
Step 3
Organize government financing programs to restore credit growth by strengthening undercapitalized banks and lending institutions. Banks, in turn, must establish a short-term grace period for liquidity and capital requirements. Also, the state should organize financial support for small and medium-sized businesses that do not have enough liquid assets to receive loans for development.
Step 4
Provide liquidity for solvent states. This will avoid loss of market access and sharp jumps in spreads. The fact is that by taking the above measures and strategies, the government may temporarily lose its creditworthiness, so it is necessary to organize a large-scale stabilization fund to support such countries.
