Abstracts Category : Other

Overview of the knock-on effects of the crisis within the last 10 years on global economics

by Arastu Agarwal

The economic condition of global affairs has been volatile since the turn of the century. The impact of the global financial crisis has left sections of the world paralyzed and others are still recovering from the impact it had on their respective economies. Economic crises have an enormous impact on the population that resides on that economy as unemployment rates tend to rise, which translates into a lower standard of living for the economy's population. In addition, that economy's industry faces several setbacks that makes it difficult to revive after the crisis. Hence, all precautions need to be taken in order to avoid collapses of institutions that may eventually trigger a crisis. The paper aims to identify the commonalities that the major crises, in the past decade share with a focus on the leading indicators. The indicators that were shortlisted for this study were Reserve Bank's Repurchase Rates, debt levels of an economy and prices of commodities that may have a strong relationship to global economics; these include Gold, Copper, Iron-Ore and Crude oil. The validity of these indicators is then analyzed quantitatively using correlation tests followed by a qualitative analysis in order to understand the rationale behind the indicator's relation to the crisis. The study will then formulate a framework and provide recommendations to stakeholders and role-players within economies in order to mitigate the risks leading up to a crisis.Advisors/Committee Members: Mukuddem-Petersen, Janine.