Global financial crisis: Exploring its origins and formulating preventive measures

Abstract

This paper offers a comprehensive analysis of the 2008 crisis, dissecting factors such as global imbalances, housing bubbles, innovation, and leverage. It underscores the need for effective risk management and regulatory reform to avert future crises. Emphasizing the regulatory trilemma—balancing stability, efficiency, and uniformity—the paper advocates for a flexible and collaborative approach among regulators, financial institutions, and stakeholders. By continuously reassessing strategies and fostering adaptability, the paper aims to create a resilient global financial ecosystem capable of preventing and mitigating future crises.