A relatively minor shock in the US housing market brought the global financial system to the brink of collapse. Banks ran into trouble and had to be bailed out. World trade collapsed, sending many countries into deep and prolonged recession. Many companies went bankrupt, people became unemployed, young people could not find jobs. The effects differed from country to country, and countries reacted differently to the crisis. What impact do these differences have on societies, both in the short and somewhat longer term? With increasing international connections and dependencies, countries, societies, organisations and citizens are becoming increasingly vulnerable to the consequences of this type of crisis. This raises the question of whether such a thing can be prevented in the future and what is needed to do so.
Connecting character
Recessions are not purely economic phenomena. The social consequences for citizens, organisations and societies are far-reaching and affect many aspects of daily life. Research into the causes and certainly the consequences of crises touches on aspects in the economic, political and behavioural and social sciences, but also, for instance, health sciences: What are the consequences of this crisis for the foundation of (Western) economies and how can we look at, for example, the financial system, the housing market, the pension system, unemployment in that context?
How do people cope with declining certainties in their daily existence?
Should steps be taken to organise supervision, governance and responsibilities of financial institutions and individual bankers in such a way that individual incentives for banks and bankers better match their societal responsibilities and actions?
Is regulation of the financial system and/or financial markets desirable and is it possible?
What are the implications at the global level, for emerging economies such as China, India, Indonesia and Brazil, and for fragile economies in developing countries?
