ABSTRACT
Starting from mid-2007, the global financial crisis engulfed the global economy. The crisis occurred at the heart of the U.S., and spread to other countries very rapidly. After Lehman's bankruptcy in September 2008, it hit almost all advanced countries and developing countries hard. Many explanations have already been presented about the cause of the crisis. Commonly presented causes of the crisis include problems of financial deregulation, too much risk-taking by financial institutions, lax monetary policy causing the real estate market bubble, and so on. The crisis was indeed a highly complex event and its full analysis is beyond the scope of this chapter. However, it is certain that the strong belief in the free market and the benefits of financial deregulation and globalization waned significantly after the crisis, while the Keynesian argument for the stronger role of the government became much more popular.
