IMPACT of the GLOBAL FINANCIAL CRISIS on BRICS and PIIGS COUNTRIES

Abstract

This paper focuses on the Global Financial Crisis of 2007-2008 that affected various economies all around the world. The crisis started when the housing market collapsed in the United States of America. The debt crisis also played its part in the problem. the Global Financial Crisis caused many big financial institutions to collapse most notably Lehman Brothers. It also caused the GDPs and economies of many countries around the world to shrink. The financial crisis was soon followed by worldwide recession. Many economies during the financial crisis needed to be bailed out. Millions of people lost their jobs worldwide. The crisis was a result of failure of the regulators and the monetary policies. PIIGS countries were hit the hardest by the financial crisis in Europe. On the other hand, BRICS countries were able to negotiate the crisis rather well due to their better policies and fast growing economies and world market share.