Global Financial Crisis of 2007: The Case of Albania

Abstract

The world financial crisis of 2007 had a severe impact on the global economy. The crisis started as a consequence of the non-well performing banking system and led then not only to a financial crisis but also to a global economic crisis. Eight years after the outbreak of the financial crisis, it is still affecting the personal and public spending of many governments from all continents. Only the crisis of 1929-1933, known as Great Depression, can be compared to this crisis with regard to the damages it caused to the global economy. Since the effect of the crisis was spread all around the world, this means that all the countries have suffered from it, or at least they have had negative effects from it. Therefore, this study is particularly interested on a specific country, which is Albania. The study will provide the main developments that occurred in Albania during the crisis; how it was affected; how the government interfered to prevent it; how much serious was the damage caused by neighbor countries, especially Greece, since Greece was one of the countries that suffered the most from the crisis and there are many Albanian emigrants living in Greece. Given the consequences the crisis had in the world economy, it is expected that governments and international institutions will intervene to prevent such similar crisis, and therefore this study provides a discussion section in the last part.

DOI: 10.5901/mjss.2015.v6n4p130