Abstract
While the 1929 Wall Street crash is a historical event we have long studied without personally witnessing, we are currently experiencing the tangible repercussions of a contemporary global financial and economic crisis that mirrors that 80-year-old spark, originating once again from the same epicenter: Wall Street. Just as we read about the collapse of the Bretton Woods system post-World War II, we are now observing the potential unraveling of the global capitalist financial order led by the World Bank and the International Monetary Fund. Economic and financial crises are inherent, organic phenomena within the capitalist system, representing the most severe phase of the economic cycle; they typically commence with sharp declines in stock markets, triggering panic selling, corporate and banking failures, and widespread insolvency. Without swift government intervention, a deficit of confidence permeates the economy, leading to production halts, mass layoffs, and a recessionary spiral characterized by sluggish growth, diminished aggregate demand, rising unemployment, and burgeoning trade deficits. For Iraq, the most pressing concern lies in the crisis’s impact on the national economy, primarily through falling oil prices which jeopardize reconstruction efforts and living standards. This predicament necessitates a strategic decoupling from excessive integration into the U.S.-led capitalist economy, as rapid market liberalization policies have proven inadequate. Consequently, it is imperative to move beyond the prescriptions of international financial institutions in favor of scientific, realistic economic policies rooted in national development priorities. Ultimately, this global crisis may plunge the capitalist world into a prolonged recession—perhaps the most formidable since the Great Depression—potentially ushering in new economic theories and fundamental structural reforms in the global economic order.
DOI
10.33095/jeas.v15i54.1205
Subject Area
Economics
First Page
182
Last Page
191
Recommended Citation
Mohammed Ghazal, M. Q. (2009). The Global Financial Crisis. Journal of Economics and Administrative Sciences, 15(54), 182-191. https://doi.org/10.33095/jeas.v15i54.1205
