Topic > What we learned from the financial crisis - 1114

As the subject of this critical analysis document I have chosen the November 2013 online article "What we 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 2008 financial crisis was not the first we faced. The financial crisis of 1929-1939, called the Great Depression, is considered by many to be the deepest economic recession in recent history. These two events were the result of weak policies and bad decisions by governments and central banks: the crisis quickly turned into an international disaster. The difference lies in how we react to each event. Taking what we learned from the Great Depression and the years that followed, the response to the 2008 crisis was faster and smarter. However, as the author points out, after three-quarters of a century of study there is still much to learn about how an economy and a financial system can work together. Even if government intervention to stabilize the economy appears to be successful, there must be concern about the effect of such actions on attitudes towards risk and responsibility. The best hope for the economic future is for economists, macroeconomists, financial economists and finance scholars to learn from their predecessors such as the English economist John Maynard Keynes (1883-1946) who stated that “The importance of money derives from its being a link between the present and the future” combine this knowledge with what is learned today and apply adapt it to the dynamic economy of the 21st century.II. Criticism I liked Justin Fox's approach of starting by demonstrating that the 2008 financial crisis with... at the center of the paper... corporate culture) and consumer behavior (ch. 11; page 279, Influences on consumer behavior consumers) in an ever-changing business environment. My final thought on this article is that it is not so much a direct correlation to the textbook as an extension of what the text is teaching us. In the modern business world we need to be aware of what has happened, what could happen, and how important it is to be current and diligent in how we do business. Works Cited http://www.investopedia.com/dictionary/http: //hbr.org/2013/11/what-weve-learned-from-the-financial-crisis/ar/1Maynard Keynes, John. The general theory of employment, interest and money. 1936. PrintBusiness Essentials, Ninth EditionBy Ronald J. Ebert and Ricky W. GriffenCopyright© 2013, 2011, 2009, 2007, 2005 Pearson EducationPublished by Prentice HallPrintPages; 4, 22, 102, 130, 279