Analysis of major economic crises and the world economy in crisis recommendations and comments leave policies

Crises are unexpected or unpredictable progresses that lead to situation affecting seriously government at the macro level and firms at the micro level. The study starts with an analysis of the 1873 Long Depression (Panic of 1873). Literature refers The Great Depression of 1929 as the first international crisis. Yet Long Depression was a deeper economic crisis embracing the world and during the depression no country could loan the others. Since The Great Depression world countries has faced many economic crisis. As a consequence of the globalization and interdependence, all countries felt the crises more or less. Contagious effects of the crises particularly following 1990s have resulted in the creation of new theories. Nevertheless internal economic and political instabilities of a certain country may also lead to a crisis. In case of instability, due to the great sensibility of the foreign capital, outflow of foreign capital may intensify the damages of crisis.This study aims to analyze major economic crises in the world economy and defines the recovery policies. Study deals firstly the types and effects of the economic crisis. Then it explores in the second chapter the underlying causes and outcomes of the major economic crises, the way they disseminate and the applied recovery policies.Keywords: Economic crisis, Outcomes of the crisis, World crises, Crisis in developing countries.