The Financial Crisis - Global Impact and Lessons

A review of the 2007-2008 financial crisis is conducted. We synthesize the insights provided by literature on the impact of this crisis on the United States and other countries. The extant literature on the policies undertaken by policymakers in United States and Europe and their global impact is reviewed, together with the prediction literature to assess the advancement in crisis forecasting. Finally, the lessons learnt from this crisis are put together for better preparedness for the next crisis. This is especially important in light of the worldwide disruption in economic activity and the expected global recession arising from the COVID-19 pandemic.