THE FINANCIAL CRISIS AS MANIFESTATION OF THE SO CALLED “THE POLITICAL TRILEMMA OF THE WORLD ECONOMY

Abstract

Over the centuries, have been many financial crises, which occurred in
cycle shaken the world's largest economies. In general, crises are more or less
similar in appearance, the appear occasionally. The same case is also the recent
financial crisis of 2008, known as the global financial crisis, considered biggest crisis
since 1930s, which create financial, economic and social problems.
Financial and economic crisis later was transformed into a social and
political crisis. Macroeconomic indicators analysis shows that the economic crisis
has interrupted the positive trend of development. The most important lessons
that the financial and economic experts and the biggest political leaders of the
world took out of this unprecedented crisis, is that the “phenomenon of
globalization” already is a constant challenge, whose economies of countries
should adopt and also create mechanisms to deal with it.
Through this paper, referring to scientific literature I will analyze what are
the main causes of the financial crisis and what are their effects on the economy.
Will be treated consistently as well as political trilemma, which shows the need of
sacrificing one of the three pillars of Trilemma as: economic globalization, political
democracy and national sovereignty who are reciprocally incompatible with one
another.