The Global Financial Crisis had a profound impact on almost all parts of the world. Millions of people around the world had to change their lifestyles, many financial institutions went bankrupt, thousands of employees lost their jobs, many people ended up living on the streets, governments in most part of world had to interfere, with bail out plans regardless of the fact that how capitalistic and free market their economy was, to save their institutions. Many countries, which were climbing up the ladder of economic growth, witnessed decline in growth rates and worse, many western countries ended up posing shrinking of the economy. Stock markets in all around the world crashed very badly. The Gross Domestic Product of the world economy was 61.38 Trillion US dollars in the year 2008, which fell down to the level of 58.26 trillion in the year 2009. The trend also continued in the year 2010, however, there are no authentic figures released for the same yet (Buckley, pp. 201-203, 2011; United States Financial Crisis Inquiry Commission, pp. 28-30, 2011).
Most the countries, specifically the United States government turned towards the Keynesian school of thought of overcoming an economic recession. ...Show more