THE MAIN REASONS OF THE GLOBAL FINANCIAL CRISIS

Abstract

Financial globalization started to dominate in the system of the international  economic re-
lations from the last quarter of the XX – beginning of the XXI century. Starting from 1970s,
global financial markets developed at an unprecedented pace. It was caused by general liberal-
ization of economic processes, especially capital flow and currency exchange regulation. As a
result, the world economy received additional incentives for development and, as in the previ-
ous post-war years, continued to grow. However, against a background of general growth of a
real sector of economy, its financial constituent started to acquire hypertrophied forms. The so-
called financial bubble was formed that burst from excessive inflation in 2007 – 2008. The world
financial crisis broke out, that affected, though to different extent, practically all the world coun-
tries.