Global Economic Crises and the Effects on the Economic System
Asst. Prof. Dr. Oguz Kaymakci

Abstract
Crisis can be identified as certain micro and macro recessions that occur all of a sudden unexpectedly. The reasons behind the crises are reduction of a state’s international reserves, fragility of the banking system, inflation, appreciation of local currency, foreign trade deficits, expansion of loans and the following increase in supply of money. The contagious nature of crises make them quite dangerous and threatening the world. With this perspective, global system forms one of the threats. In this study, while analyzing the dynamics of “global crises” starting from Great Depression of 1929 until today, an answer to the problematique on whether this new position of “global economic system” necessitates a new system perception or, actually, a warning mechanism that would prevent the fragility by revising the current system.

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