Prevention of financial crises under the economic globalization conditions

Abstract

The purpose of this study is to evaluate two XXI century financial crises and analyze them in a business cycles. It is important to study financial crises in the theoretical and practical aspects, because it is a recurring phenomenon. This article analyses the concept of financial crisis and exposes connection between financial crisis and business cycle. The work includes factors causing financial crisis, financial crises classification and meaning of globalization for financial crises. This study analyses two financial crises of the XXI century, that started from explosion of the speculative bubbles and how they escaladed. Factors, that caused these crises, are integrated in a business cycle. This system of factors causing financial crisis allows to notice in which stage is economy and predict emerging threats.