Response of the International Monetary Fund and the European Union to the Global Financial Crisis

Abstract

The aim of the paper is to show the evolution of the global crisis, its involvement and to discuss the response of the International Monetary Fund and the European Union to the global financial crisis. In this paper I will try to cover the following issues: The first part of the paper deals with the history of the evolution of the global financial crisis and its enlargement in the euro zone, by identifying the causes of the crisis in the European market from 2006. In the second part will be discussed for drafting emergency plans that were used to set up all the possible "barricades" of the enlargement and the exposure of entire global financial system. Further will be explained the reaction of IMF and EU to global crisis and which were the rescue packages from the IMF and EU. Will be explained the role of European stability mechanisms, allocation of funds to the countries most affected by the financial crisis and financial assistance programs for EU declarations since 2008. In the end will be explained what measures were taken to prevent this crisis and according to analysts the period after the crisis there will be an economic growth from 2011-2025

DOI: 10.5901/ajis.2014.v3n2p191