ISSN: 1817-5880

Keywords : Financial Crisis

Ramifications of the World Financial Crises on GCC and the Role of Fiscal Policy

Dhaidan Tawirish Hashim

Gulf Economist, Volume 33, Issue 34, Pages 1-19

A clear fact for the GCC countries is the dominance of the oil sector in the economies of those countries, especially with regard to the elements of the budget, so it used to link the level of public expenditure with the expected revenue from the oil sector in the past, but in the recent global financial crisis 2007, In a different context, the correlation of fiscal policy, particularly the agreement, reflected strong links to these crises through expansionary policies in the opposite direction of the economic cycle. This study attempts to find out the reasons behind this policy and its role in dealing with the deflation of the GCC countries The previous study concluded that the previous crises were being dealt with by a policy of deflationary spending, that is, the fiscal policy was affected by the economic activity and is ineffective. As for dealing with the repercussions of the recent financial crisis, the fiscal policy followed is described as influential in economic activity, But its impact is going abroad

Analysis of Financial Crisis Phenomenon and The Ways of How to Avoid It

Yousif Ali abed Al; Asadi; Hussein Jawad Kadhum

Gulf Economist, Volume 32, Issue 28, Pages 44-77

The financial crises that happened now in the world are not the result of a given moment as well is not new in its causes or results or treatment ways .the strengthens of these crises have been decreased through fourth past decades, especially after appearing of the economic coalitions and the sovereignty of economic freedom in the field of communication and transportations.
These developments led to liberate and expand the movement of global capitals, and abolition the restrictions of foreign currency exchanges and finding the financial derivatives. Besides, money and debts become, in such environment, as a good which can be sold and bought and the financial economy start to be invading step by step the real economy. As it is known in the economy that there would be necessary conditions to attain a stable macroeconomic environment which is the availability of unstable financial sector that lead to an unstable macroeconomic. The talking about facing financial crises based on the actions taken before the occurrence of crisis, considering that the crisis treatment after it occurred deferent according to the type, origin, appearance and the tools available to deal with it. The main steps that should be taking in account to face the crisis includes: risk management strategy, using financial markets efficiency indicators, the use of leading financial indicators and early warning systems.