Forum Case

Nowadays, with invention of the advanced technologies, an extensive baggage of knowledge and experience on economic and political history of each country over the world, to solve all financial, economic and political issues beneficially for all parties is getting more complicated, and most of the issues have not been seriously taken into consideration yet. In his presentation "Recent development in global market", Watanabe points out that the international financial situation has been undergoing a continuing chain of crises triggered by the Lehman Shock--from the Greek crisis to the financial crisis in Europe as a whole. The presentation is based mostly on empirical issues of recent developments in Europe and Asia after financial crises, and describes the first response of governments to the 2008 financial crisis. Thus, I have been pushed to look through briefly the recent financial crisis from the point of a government, i.e., what measures and tools were initially taken by governments to meet the global crisis. In the following paragraphs I would like to do analysis on the government developments in the global market in Europe and Asia.

First, the global market is a market where all domestic markets are interdependent and can have a significant influence on each other. Therefore, any disruption of political, financial, or economic situation in one country is similar to a chemical chain reaction that affects fast and disruptively on countries having a weak fundament of their politico-economic systems.

Speaking about first tools undertaken to "rescue the European currency", Etienne Balibar notes that "the Greek were the first victims, but they will hardly be the last, of a politics whose strategic dispositions (mainly imposed by Germany) are, first and foremost, a general restriction of public expenses (admittedly, the Constitutional Treaty involved a rule of maximum budget deficit, but this was never enforced...), and in addition a (rather mild) control of speculation and the free movements of hedge funds and traders, already announced after the crisis of the sub-primes and the actual or virtual crash of the US banks in 2008. To this, neo-Keynesian economists add another request: moving towards the creation of a European economic government (especially through the unification of tax policies), possibly also correlating and enhancing industrial investments.....In its current form, under the influence of the dominant social forces, the European construction may have produced some degree of institutional harmonization, and generalized some fundamental rights, which is not negligible, but, contrary to the stated goals, it has not produced a convergent evolution of national economies, a zone of shared prosperity, far from. Some countries are dominant, others are dominated, with respect to shares in the markets, or concentration of financial capital, or industrial dependency... - Any "keynesian" strategy