What We’ve Learned from the Financial Crisis

As the subject of this critical analysis paper I have chosen the November 2013 online article “What We’ve Learned from the Financial Crisis” from the Harvard Business Review at http://hbr.org/2013/11/what-weve-learned-from-the-financial-crisis/ar/1 by executive editor Justin Fox.

I. Summary

The financial crisis in 2008 was not the first that we have faced. The financial crisis from 1929 to 1939 referred to as The Great Depression is considered by many as the deepest economic downturn in recent history. These two events were the result of weak policies and bad decision making by governments and central banks a crisis quickly turned into an international disaster. The difference is in how we reacted to each event. Taking what we learned from the great depression and the years that followed the response to the crisis in 2008 was quicker and smarter. However, as the author points out that after three quarters of a century of study there is still a lot to learn about the way an economy and a financial system can work together. While the government intervention to stabilize the economy appears to be successful there has to be concern for the effect of such actions on attitudes about risk and responsibility.

The best hope for the economic future is in the economists, macroeconomists financial economists, and financial scholars to learn from their predecessors like English Economist John Maynard Keynes (1883-1946) who stated that “The importance of money flows from it being a link between the present and the future” combine this knowledge with what is being learned today and apply it to the dynamic economy of the 21st Century.

II. Critique

I liked Justin Foxes approach of starting out by demonstrating that the financial crisis in 2008 w...

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...rporate Culture) and Consumer Behavior (Ch. 11; Page 279, Influences on Consumer Behavior) in a constantly changing business environment.

My final thoughts on this article are that it is not so much a direct correlation to the text book as much as it is an extension what is the text is teaching us. In the modern business world we have to be aware of what has happened, what may happen, and how important it is be current and diligent in the way we do business.

Works Cited

http://www.investopedia.com/dictionary/

http://hbr.org/2013/11/what-weve-learned-from-the-financial-crisis/ar/1

Maynard Keynes, john. The General Theory of Employment, Interest and Money. 1936. Print

Business Essentials, Ninth Edition

By Ronald J. Ebert and Ricky W. Griffen

Copyright© 2013, 2011, 2009, 2007, 2005 Pearson Education

Published by Prentice Hall

Print

Pages; 4, 22, 102, 130, 279