Journal of Business and Administrative Studies

Abstract

The financial crisis that erupted in September 2008—following more than two
years of financial turmoil has become global crisis for the world economy. An
attempt is made in this study to assess the possible causes of the origin,
contagion and impact of the current global financial crisis with particular
emphasis on Africa and Ethiopia. It also provides a summarized historical
overview of past global financial crises in view of the economic theories of
financial crises. The study utilizes the fundamental economic theories related
to financial crisis to depict and illustrate the bigger picture. The paramount
importance of this study is a detailed analysis of the current global financial
crisis, and its wide ranging impacts by creating a clear link with past financial
crises in different regions of the world. The method followed throughout this
paper is qualitative and descriptive in nature. The transmission channels
for the Ethiopian economy in the study are the knock on effects, external
sector and commodity prices, investment, official transfers and remittance
and the impact on the flower industry.