HYPOTHETICAL CRISIS POLICY FRAMEWORK FOR THE RECOVERY OF LITHUANIA‘S ECONOMY: SEARCHING FOR IMPACT OF GLOBALISATION
Keywords:economic crisis, globalisation, Lithuania’s economic situation, crisis policy framework, economic recovery
There are many scientific works were globalization, deregulation, liberalization and financial crisis is interpreted as a process that creates great instability and fragility in their emergent markets economies. As it was stressed in the latest work of Martens and Amelung (2010) globalization is something more than a purely economic phenomenon manifesting itself on a global scale. Globalisation supposes to be interpreted as a phenomenon which makes impact to the economic crisis. The depth and breath of the current global financial crisis is unprecedented in post-war economic history. It has several features in common with similar financial – stress driven crisis episodes. It was predicted by relatively long period of rapid credit growth, low risk premiums, abundant availability of liquidity, strong leveraging, soaring asset prices and the development of bubbles in the real estate sector (European Commission, 2009).This paper points out the statement that globalisation may negatively affect the growth of economy. In order to prove this hypothesis some providences of globalisation as the preconditions for the global financial crisis were presented. The classification of the lessons from the past considering crisis prevention as well as practical analysis of the situation of Lithuania’s economy allowed to suggest hypothetical crisis policy framework (hypothetical recipe) for the recovery of Lithuania’s economy. The research problem being solved in this article: what is the impact of globalisation to the state of economy? What was the impact of present economic crisis on Lithuania’s economy? How to construct hypothetical recipe for the recovery of Lithuania’s economy? The object of the research is Lithuania’s economy in the presence of global crisis. The aim of this article is – highlighting the points of globalisation impact to the state of economy, to present the hypothetical crisis policy framework for the recovery of Lithuania’s economy. To achieve this aim five tasks were solved: to present some providences of globalisation as the preconditions of global financial crisis; to classify the lessons from the past economic crisis; to highlight the main impact of global economic crisis on Lithuania’s economy; to systemise the specific actions of the Government of the Republic of Lithuania in the presence of Global economic crisis; to recommend hypothetical crisis policy framework for the recovery of Lithuania’s economy. The research methods: analysis of scientific literature, synthesis; comparative analysis of statistical date. The results of the article: there was presented particular approach to the impact of globalisation to the state of economy; constructed the scheme of interrelation of classic and modern economic growth theories searching for impact of globalisation on change of values; classified the lessons from the past economic crisis; highlighted main impact of global crisis to Lithuania’s economy; systemised specific actions of the Government of the Republic of Lithuania in the presence of Global economic crisis; recommended hypothetical crisis policy framework for the recovery of Lithuania’s economy.