Suchergebnisse

The global economic crisis strongly affects economic slowdown in the world
due to the effects of reduced demand in developed economies. The fall in
demand in the European market had a negative impact on Serbia?s foreign trade
and economic growth. The reduction in export demand, reduction of industrial
production, the company in default, wage cuts and rising unemployment are the
main features of the crisis that has engulfed Serbia. Serbia needs structural
reforms at all levels in order to increase the competitiveness of the
economy, which is now at a low level. In the last decade Serbia?s economic
development based on the integration in European and global markets and
foreign direct investment. An additional impact of crisis in Serbia was a
significant shortage of foreign capital. The decline and fall of the
investment trust in the banking system, manifested by withdrawal of foreign
funds from the financial system and reduce foreign exchange liquidity. The
recovery of Serbian economy can be expected by introduction of new reforms,
economic measures. In addition to reducing the fiscal deficit and savings, it
is expected a creation of favorable business environment for investment and
business. Political and economic stability is the basis for attracting
foreign direct investment.

The article examines how the deepening of the world economic crisis impacts
global financial flows and performance of international financial
institutions, with focus on two issues: 1) did the decrease of the Euro means
the beginning of the global currency war?; 2) is there any sort of banks?
?conspiracy? in the world gold market? Long-term financial crisis demands a
decisive reform measure to mend the functioning and structure of the IMF,
World Bank Group and other global and regional financial institutions. This
means that the outcome of their policies has been inadequate, so far, and
that their role is subjected to a critical observation in finding an
efficient performance of financial markets. Beijing is becoming more generous
lender for a large number of the low-performing countries, offering them the
significant support in Yuans due to Chinese geopolitical interests. China and
Russia in the field of economic development are strongly complemented: the
scope of cooperation is very broad, and there is a strong potential for the
establishment of other world currencies, which would suppress the U.S. dollar
as the dominant currency in global commodity and financial transactions. The
authors conclude that the struggle to increase the competitiveness of the
national state, at the expense of others, continues in the era of the deepest
global financial crisis.

The modern economic and financial crisis has caused a significant reduction
in trade flows for the first time since the Second World War, so it is often
referred to as the trade crisis. Despite many benefits and disadvantages of
liberalization as key contemporary features, the current crisis has led to
re-examination of these attitudes affecting the introduction of protectionist
measures and to strengthening of regional ties and numerous alliances. The
question that arises is how trade flows will look like in the future and
whether regional integration will prevail over multilateralism and the
liberalized multilateral trading system. The financial crisis quickly became
an economic crisis that hit all sectors. The first visible effects of the
crisis were reflected in a sharp fall in trade flows that were conditioned by
drop in demand, what led to fall in production and employment. The first
reaction of many countries was to take protectionist measures in order to
protect their national interests. This is again aroused a debate among
proponents of liberalism and protectionism, where the effects of the
emergence of the crisis favoured the latter. Economic decision makers are
faced with the pressing economic problems and they tried to mitigate them (at
least in a short term) turning to regional partners and less to the world
market.

The emergence and deepening of the global economic crisis is reflected in
large part on the functioning of international financial institutions and
their current structure. The long-term financial crisis has placed demands
for decisive reform moves in the functioning and structure of the IMF, the
World Bank Group and other global and regional financial institutions. This
means that so far, the results of their policies have been inadequate and
that their role is subject to critical observation finding an efficient
performance of financial markets. The crisis has imposed the need to reform
international financial institutions and the new global financial
architecture. Changes in structure and their functioning should lead to the
global economic stability. Members of the Euro zone are faced with a new
attitude towards the international financial institutions and the
International Monetary Fund, in particular. The proclaimed missions of the
International Monetary Fund and the World Bank are clearly separated in
theory, but with the passing of time, their activities have become
increasingly intertwined, so that they often include a name - international
financial institutions.

In this paper, the authors analyze the possibilities and advantages of
realization of the idea of creating the European Monetary Fund, the European
equivalent of the IMF. European officials and experts believe that the
financial crisis in the European Union, as was the case in Greece, can be
successfully solved within the EU institutions. The assistance that the EMF
would provide would be stipulated by fulfilment of strict conditions. The
ECB, which insists on independence, would join it in establishing this
mechanism, since not any has been created so far that would provide
financial assistance to members of the Eurozone.

In analyzing regional economic integration in Europe the authors pay special attention to the development in the European Union, for other forms of regional or sub regional integration at the continent are in fact mostly transitional and provisional, and directly connected with EU. The authors argue that in spite of considerable success and high level of integration of the EU, several important open issues remain in that process. They are results of mixed character of European integration: political and economic. Too many kinds of interests are of opposed character, and it is very hard to harmonize them in real politics. The main problems in the EU have their cause in the nature of European integration: international competitiveness of European economy, social character of European states, national productivity, challenges of enlargement.

In analyzing regional economic integration in Europe the authors pay special attention to the development in the European Union, for other forms of regional or subregional integration at the continent are in fact mostly transitional & provisional, & directly connected with ED. The authors argue that in spite of considerable success & high level of integration of the EU, several important open issues remain in that process. They are results of mixed character of European integration: political & economic. Too many kinds of interests are of opposed character, & it is very hard to harmonize them in real politics. The main problems in the EU have their cause in the nature of European integration: international competitiveness of European economy, social character of European states, national productivity, challenges of enlargement. References. Adapted from the source document.