Impact of Global Financial Crisis on Developed and Emerging Economies

Abstract

This research proposal seeks to investigate the different effects of the GFC on these two economic groups. In 2008, a cataclysmic event shook the global financial system to its very core. It wasn't a market correction or a blip on the radar; it was the Global Financial Crisis (GFC), a financial earthquake that revealed the fault lines beneath Wall Street's seemingly impenetrable edifice. Developed economies, once regarded as unshakeable pillars of financial stability, found themselves on the verge of collapse, their foundations weakened by years of reckless lending practices and a house of cards built on subprime mortgages. But, amidst the wreckage, an intriguing story unfolded. Emerging economies, which were once viewed with scepticism as fragile dominoes waiting to fall, have shown surprising resilience. While the GFC's tremors were felt all over the world, their impact varied dramatically, leaving developed economies with deep scars and emerging economies facing a complex mix of challenges and unexpected opportunities