Accomplishments since the 2008 Global Financial Crises

Accomplishments since the 2008 Global Financial Crises Name of Student Institution Affiliation Contents TOC \o "1-3" \h \z \u Accomplishments since the 2008 Global Financial Crises PAGEREF _Toc1729069 \h 4Introduction PAGEREF _Toc1729070 \h 4Corrective measures PAGEREF _Toc1729071 \h 6Short-Term Global Responses PAGEREF _Toc1729072 \h 6The Role of IMF in Global Surveillance and Management PAGEREF _Toc1729073 \h 9Base III PAGEREF _Toc1729074 \h 10Reforming OTC Derivatives PAGEREF _Toc1729075 \h 11Conclusion PAGEREF _Toc1729076 \h 13 Abstract The ramifications of the 2008 global financial crisis were felt globally. The crisis nearly destroyed the credit mechanism following the loss of confidence in the financial markets as well as the deterioration of the risk appetite. The global financial crisis marked the start of severe financial instability and economic meltdown with costly economic consequences such as loss employment, loss of houses and complete disorientation of the prospects of families globally. Numerous achievements have been made to restore the global economy and avert a possible crisis in the future. Such improvements ranged from fixing the loose monetary policy and overall advancement of the macroeconomic environment, prompting the attainment of market stability and enhancing the structural repair to prevent future crises. Deliberate commitments and policies’ implementation on a global scale continues to strengthen the global economy, increase resistance to crises and increases safety globally. The EU Banking Union and Basel III, although not fully implemented standout as the best-implemented policies and regulatory initiatives in the post-2008 global financial crisis. Additional notable long-term achievement is the reforms on the OTC derivative trading except for the complex cross-border and market differences. Accomplishments since the 2008 Global Financial Crises Introduction The ramifications of the 2008 global financial crisis were felt globally. The crisis nearly destroyed the credit mechanism following the loss of confidence in the financial markets as well as the deterioration of the risk appetite. The global financial crisis marked the start of severe financial instability and economic meltdown with costly economic consequences such as loss employment, loss of houses and complete disorientation of the prospects of families globally. The crisis took policymakers and financial markets alike at a surprise without anyone anticipating such devastation was to happen. The unanticipated collapse of global markets reinforced that no economy is immune from financial crises and adequate preparation need to be put in place. The impacts of the 2008 global financial crisis shocked the expectations of both the academics and economic practitioners. Krugman (2009) noted that the aftermath of the crisis led to the collapse of “the whole intellectual edifice” of financial supervision (p. 5). The adverse consequences of the global markets collapse called for urgent and dynamic changes in the regulatory frameworks of financial and securities markets as well as entirely changing how economics has always been taught (Shiller, 2010). Helleiner (2011) notes that the global financial crisis of 2008 was the most catastrophic sinc...