A PRESENTATION ON

GLOBAL ECONOMIC
SLUMP
 WHAT IS ECONOMIC SLUMP

A situation in which the economy of a country

experiences a sudden downturn brought on by
a financial crisis. An economy facing an
economic crisis will most likely experience a
falling GDP, rising/falling prices due to
inflation/deflation. An economic crisis can take
the form of a recession or a depression.
PRICE LEVEL VS. NATIONAL INCOME
 HISTORY OF WORLD ECONOMIC SLUMP
The World Economic Crisis after the world war 2 at the
time of great depression. It was the largest and most
important economic depression in modern history,
and used in the 21st century as a benchmark in how
far the world’s economy can fall. The Great
depression had a shocking effect on every country,
rich and poor. Personal income, tax revenue, profits
and prices dropped, and international trade come
by a half to two-thirds.
Unemployment in the united states rose to
25% and in some countries rose as high as
33%. Cities all around the world were hit
hard, especially those dependent on
heavy industry. The financial crisis of 2007-
2009 has been called the most serious
financial crisis since the great depression
by leading economists.
 EFFECTS OF ECONOMIC CRISIS

Higher bank capital requirements on the way.

Everyone should look for “exit strategies”.
BIS study confirms some perceptions of Basle accord.
Banks continue retreat from south.
Crisis causes massive employment.
Massive retreat by banks from emerging markets.
Financial turmoil spreads across the world.
 EFFECTED COUNTRIES BY WORLD
ECONOMIC CRISIS
The most effected countries by world economic crisis are
Argentina
Thailand
Australia
Russia
Malaysia
Mexico
CONCLUSION
 BUILDING A WORLD ECONOMIC
STRUCTURE WHERE PEOPLE MATTER
Alternative global monetary system.
Money is the blood of our community, and now that
blood is poisoned!
A community currency system.
Encourage audience members to fundamentally re-
think their understanding of money.
‘it is like the titanic. If we do not want to drown, we must
learn how to swim’.
Communities can create their own money.
Such systems represent an interim step in the transition from
a ‘profit economy’ to a ‘gift economy’.
 FINGER POINTING OR FOCUSING
THE SYSTEMATIC REFORMS
Argentina is focusing attention once again on the urgent need for reforming
the global financial system.
Argentina requires a haircut not only for foreign bondholders but also for the
IMF itself.
UN conference provides motion to the financial reforms but US is set to go
against any step towards reforming Bretton woods.
Govt., political class must take responsibilities.
IMF must also be accounted for crisis.
Experts suggest that if reforms aren’t made then the world will suffer more
crisis.
 REFORM THE IMF QUOTA AND DECISION
MAKING SYSTEM
Quota system in the IMF and world bank should be
reformed.
Distribution of voting rights among member states.
A few major developed countries hold a majority of
the shares allocated.
Few countries influence executive board and staff.
Presented by:
1. SHIBA KUMAR PALO
2. SAUMYA PAILWAN
3. MANSI K
THANK YOU