For an overall estimation of the current crisis, we should highlight its three important characteristics: This crisis itself represents the first world crisis of global capitalism, which happened after the collapse of the world socialistic system; The current crisis serves as a crisis of the global liberalism model, pointing to the imperfection of modern economic system; The current crisis can be considered as a turning point in the global economic system and in national economic models, as well as in economic science. All these features give it the enormity and the increased level of risks

1. Ruhulla Abdul
IFF 2-2
Moscow 2015
FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN
FEDERATION

2. A modern economic crisis: Distinctive Features
The origins and causes of the crisis
Financial Instruments
Crisis in the USA
The anti-crisis policy
References

3. For an overall estimation of the current crisis, we should
highlight its three important characteristics:
1. This crisis itself represents the first world crisis of global
capitalism, which happened after the collapse of the world
socialistic system;
2. The current crisis serves as a crisis of the global liberalism model,
pointing to the imperfection of modern economic system;
3. The current crisis can be considered as a turning point in the global
economic system and in national economic models, as well as in
economic science.
All these features give it the enormity and the increased
level of risks

4.  The transition of an economy to economic model focused on the
achievement of short-term benefits (profits);
 This is equivalent to a rapid widening of the role of speculative
factors and speculative economic model in a modern market
economy;
 Business was considered as "making money out of nothing", and the
economy became as "the economy of speculative bubbles“;
 There was a separation of money circulation with the development
of production-consumer sector of the economy, which increases the
volatility (instability) of financial markets and of the economic
system in a whole;
 Creation of a global financial network weakens the connection
between the world of money (finances) and the real economy;
 The modern market system represents a huge amount of unsecured
debts with a real danger of becoming a huge flow of paper money.

5.  Brent barrel petroleum spot prices since May 1987. Due to exchange rate fluctuations, the real price line is only
relevant to the United States and countries with a currency tied to the U.S. dollar at a constant rate throughout the
period. (Source: Energy information Administration).
Today, even the real economic resources and benefits have become as a speculative
instruments: oil, land, real estate, etc. This is especially true for the oil market.
This can be seen in the following example:

6. Production of oil in 2008 and 2009
Trade of oil in 2008 and 2009 (Net exports)

7. Overall picture of oil trade in the world
Production Consumption

8. • With uncontrolled use of financial
instruments, money become the main
derivative, maximally loaded with a
variety of risks and inevitable inflation
collapses;
• Financial markets lost connection with
the production and consumer economy;
• This led to uncontrolled rise in the use of
derivatives with a complete separation
from their real (secured) assets;
• High risk of arising pyramid of
derivatives lies primarily in their two
fundamental differences from other
securities:
1. their trade is mainly carried out in the
mode of over-the-counter (OTC) deals;
2. there is no insurance in their turnover.
This leads to key contradiction of
modern financial capitalism between
the limited material resources and the
ability to create virtually unlimited
financial resources by expanding the

9.  The financial system has lost stability, losing connection between finance and production;
 The imbalance, even with the ability of finance capital to create money out of "emptiness", turns into a need to use of
redistribution mechanism to resolve such economic irrationality;
 A new model of maintaining of equilibrium in the world economy appeared. Chronic deficits in the US economy were
covered by capital surpluses by East Asian countries, and oil exporting countries;
 The modern American model that was developed as a model of excessive consumption financed by savings from other
countries came close to his exhaustion. This led to the use of development policy at the zero rate of domestic savings
and, consequently, the rapid rise of US debt ($18.6+ trillion for 11.2015);
 This new model of world economy, characterized by disequilibrium, which laid the serious imbalances in the global
financial and economic system, requires a radical transformation;
 All these features caused the current crisis which started in 2007 in the US mortgage market (The United States
housing bubble) and then covered the whole world economy (see graph).
Until the root errors of current global speculative financial
system will not be eliminated, there is a risk of emerging of
large-scale crises.
The way out of the crisis must be sought in the rejection of
speculative model of "casino economy".
Only through the weakening of speculative component and
the resubordination of the financial system to work in the
interest of the consumer-production and socio-economic
activities a full recovery of the economy can be achieved.

10. 1. Rejection of use of some national currency as a global reserve currency.
2. The establishment of strict and transparent rules regulating the market of complex
financial instruments to the creation of monitoring areas
3. The introduction of an additional tax on all speculative transactions
4. The transition to a system of fixed prices for energy
5. Return to the international practice of differentiation and specialization in the
activities of financial institutions.
6. Generalization and use the experience of the Islamic financial model
The proposed measures, of course, do not exhaust the whole package of other changes
and require further analysis. But they, in my opinion, reveals the logic and direction of
change in the world economic sphere, if we really want to solve the problem of the
transformation of the economy to speculative-financial model.
The current financial crisis has shown that there are various unresolved issues in the
economy as for one state, and for the entire economic world. However, precisely because
of the crisis, these problems have been identified and examined.
After all, the crisis is essentially a mechanism for purification of the weaknesses of the
economy. And to ensure equilibrium in the economy and further prosperity, this quality
of the crisis should definitely be used.

11.  Books
 Jacques Attali The global economic crisis. What's next? SPb.,2009.
 Butrin D. rules of the game // Kommersant. 2008. December 15. P. 6.
 Vladimir Kashin Iceland - a new friend // Vedomosti. 8 October 2008. P. 4.
 J. Keynes. General Theory of Employment, Interest and Money. M., 1978.
 McConnell CR, Brue SL Economics: Principles, Problems and Policy. In 2 vols. T. 1. M .: Republic. 1992.
 V.T. Ryazanov. The economic system of Russia: on the way to another economy. SPb., 2009.
 V.T. Ryazanov. The anti-crisis policy of the Russian Federation: strategic priorities and operational objectives // The Economist.
2009. № 12.
 V.T. Ryazanov. The global economic crisis and its consequences // Modern problems of the economy. 2012.
 P. Samuelson Economics. In 2 vols. T. 1. M .: NGO "Algona", 1992.
 L. Fedun and oil Country: // join OPEC Bulletin. 2008 November 17. S. 6.
 J. Hicks. R. Cost and capital. M., 1993.
 Sources
 The World crisis - http://www.mirovoy-crisis.ru/
 The World Economic crisis - http://worldcrisis.ru/
 The World Economic crisis - http://www.economic-crisis.ru/
 The World financial crisis - http://about-crisis.ru/
 The World crisis - http://www.mirkrizis.ru/
 The World crisis - http://expert.ru/dossier/story/312294/The analysis of crises - http://www.crizis.org/
 Global financial and economic crisis - http://www.svom.info/entry/311-globalnyj-finansovo-ekonomicheskij-krizis/
 Financial crisis of 2008 and consequences for the Russian economy - http://ria.ru/spravka/20130816/956672411.html
 The UN and the Global financial and economic crisis - http://www.un.org/ru/development/fincrisis/
 Global financial and economic crisis in Russia. Trends and prospects - http://www.financial-
lawyer.ru/topicbox/economic_news/167-528134.html