Global Crisis: Transmission Channels To The Developing And Transition Countries

The failure of American sub prime mortgages has caused the outbreak of a financial crisis in the summer of 2007 in the USA. As consequence, American crisis has affected, the followed months, the entire international financial system. A year later, the crisis has hurt all countries which are strongly integrated in the international financial system, notably the developed ones. Deficiencies occurred in the system have deeply affected the whole economic development in these countries. This way, the crisis turned into a financial and economic crisis. When talking about the financial and economic crisis, it should be noticed that they are both complementary aspects of the current global crisis.