Iraq Economic News and Points To Ponder Monday Afternoon 8-12-24
Exporting Economic Crises
Economical 08/12/2024 Yasser Al-Metwally Anyone who follows global economic trends notices from time to time the occurrence of a financial crisis here and there.
These crises lead to the occurrence of transitional economic crises that are clearly visible in some countries and hidden in other countries, and
the effects differ here and there depending on the fragility of the economy of the countries in which the crisis appears clearly and the strength of the economy of other countries in which its effects are hidden.
Perhaps money is the root of the problem, as its interactions crystallize and are reflected in the economy.
I am referring only for the purposes of analysis and clarification of the mechanism of financial crises occurring in major capitalist centers and then their transition to global economic crises,
as I previously mentioned in the previous article titled: The global economic paths are single (Monetary chaos) and
by that I meant that this chaos has a major role in the occurrence of obvious crises, as fragile economies complain of the occurrence of continuous economic crises, at the very least during the economic cycle, which is known as follows (they are fluctuations that occur in economic activity, moving from a state of recovery and growth to a state of recession and recession, where growth declines and unemployment increases, and then the cycle continues until recovery occurs.
Experts in economics attribute the causes of economic crises to the fact that they are crises exported from advanced economies (from abroad) to developing economies, and
they are a product of globalization, which has opened borders wide with international agreements binding on countries, and the arms of globalization have helped in deepening them, especially the International Monetary Fund, the World Bank, the World Trade Organization, and the Organization.
USAID in imposing their strict, binding conditions, whether in the field of financing and granting loans or aid that countries need, and the necessity of applying them to the policies of those countries in a way that achieves a high degree of economic liberalism.
Here the picture becomes clear regarding the export of crises that are at the forefront of the financial markets, as money is the basis.
As for the meaning and concept of deportation, with a simple definition,
it is the deportation of economic crises internally by countries receiving funding and aid, so the solutions are patchwork, so you find crises continuing in some countries.
The monetary chaos left behind by the world’s decision to abandon the gold standard as a standard for evaluating currencies in 1971, liberalize exchange systems, and liberalize capital movements is behind the occurrence of economic and financial crises without radical solutions.
Thus, money is the basis of economic affliction, especially in countries that do not manage it well..
Naturally, monetary chaos causes exchange rates to fluctuate and differences between the official rate and the parallel rate.
It is a prominent phenomenon in emerging and weak economies.
Examples include, but are not limited to, the Turkish, Iranian, Egyptian, Iraqi, and many others, along with other reasons, of course, which are the reason for the occurrence of financial crises.
Crises are a phenomenon that originates from abroad and is transmitted through solutions faced from within, which causes continuous financial crises in the countries where their crises are resolved, and this is what must be paid attention to.
Hence my choice of the title of the article: Financial crises between export and deportation.
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