Revisiting the 2007–2009 Financial Crisis: A Holistic Perspective

Abstract

The purpose of the article. This article provides a multidimensional assessment of the wideranging impact of the 2007–2009 financial crisis, with the particular emphasis on its financial, macroeconomic, and socio-political impacts. It examines the profound disruption to the banking sector and deterioration of macroeconomic conditions, as well as the subsequent political and social consequences. The findings support the research hypothesis that a crisis-induced decline in public trust in the banks and financial sector increased skepticism towards globalization and heightened political polarization.Methodology. Adopting an interdisciplinary approach, the study employs desk research and comparative methods to examine financial, macroeconomic and socio-political perspectives over the past decade. This research provides a critical appraisal and comparative synthesis of wide range of studies on the impact of financial crisis on macroeconomic trends and public trust.Results of the research. The global financial crisis precipitated structural changes in bank regulations with tighter capital requirements and prompted a retrenchment from the socially beneficial lending. Large-scale state intervention undermined market discipline and fueled public distrust. Economically, the crisis triggered deglobalization and accelerated the relocation of production towards emerging markets. Socially, it widened inequality, eroded trust in capitalism, and energized populist and anti-establishment movements.