Abstract:
The world economy is currently going through a serious financial upheaval that sparked off in the United States and has spread to Europe and the rest of the world, aided by increased globalization and liberalization of the world economy. Although the crisis has already led to the collapse of influential banks and firms as well as to recession in several countries, some consider such consequences as just the tip of the iceberg and that the worst is yet to come. The purpose of this paper is to suggest ways out of the current global financial crisis. To do so, it first presents an overview of the causes and consequences of the current turbulence, followed by an assessment of the depth of the crisis and its implications for the Egyptian economy, including the financial sector, balance of payments and the state budget. In addition, the paper highlights the opportunities and challenges inherent in the crisis, and concludes with some foresight regarding its impact on the world economic system.
