Is financial crises precedence for economic crises?
In 2008 and 2009, the financial crises in USA was taken as precedence for the economic crises in USA and many other countries of the world. But is financial crises always precedence for economic crises? Why not economic crises as precedence for financial crises? In reality, when the economy is well the banks will be at a profitable situation but when the economy is bad, the banks will be at a loss position and even go bankrupt. Is that not?
In my view, it is the disturbance in the general economy that brings both financial and economic crises. Currently, it is difficult to make an economy sustainable as the world has become more dynamic, complex and volatile than ever in history. Thus, nations have to develop a brilliant scenario planning strategy to better manage uncertainties that could happen.
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New Port Richey, Florida, United States