| Abstract |
The economic crisis of 1929 which started in USA and latter affected the Europe as well as the whole world and the economic crisis of 2008 are two of the most severe crisis that the humanity has ever faced. The main reasons are believed to be the dramatic effects that they had to the life of the people and the huge impact they had to the whole economic system. Another point to mention is that although it has been 87 years since the economic crisis of 1929 which is known as the ‗Big Crash‘, it is still an issue that is discussed till today on economic articles. In 1933 the unemployment reached the 25%, the income of the people had been reduced up to 50% and the financial system had broke down with 25% of the banks being closed which was a consequence of the strict fiscal policy that had chosen the government and the inaction of the central banks. Fortunately people understood quickly the wrong policy of Herbert Hoover who was the president of the USA, and received harsh criticism due to the misery that was experiencing the population. The Great Crash is a subject that has been studied and researched intensively. Ben Bernake, administrator of the central bank of the USA, researched the important role of the financial system in the dissemination of recessions and more generally in the evolution of the economic cycles. He concluded that even small changes in the basic financial figures can have a significant impact on the macroeconomic figures. As regard the crises of 2008 the first signs begun in 2006. This economic crisis has been characterized by many economists as the second more severe economic crises that humanity has ever met sine the Great Crash. The crash of 2008 begun from the collapse of the sub prime mortgages of low credit evaluation, which then spread in the real economy. Were there not the mortgage loans the crises would have began from another market of the financial sector due to the inequalities that have been created.
In contrast to the 'Great Crash', the governments and the central banks all over the world moved fast this time as regard the monetary and the fiscal policies, so as to smoothen the impact of the crises. However, the expansionary fiscal policies of the governments created huge debts in the budgets of the states. In the last decades there
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were a few financial crises in different countries and sectors of the economy, the main reason is considered to be the corruption of the governments and the lack of transparency at a governor level. The income and economic inequality has been expanded dramatically the decades before the economic crises showed. As a result, the more the inequalities have been raised the more was the influence of the higher economic strata. In the last years there has been a rising interest for the economic inequalities and the impact that they may have to the whole economy. The linkages between the economic inequalities and the economic crises are many and in some cases complicated. In columnist many researches have been conducted as regard the relationship between the inequalities and the crises. The vast majority of them conclude that economic inequalities do affect the crisis situation but the level of the influence that they conclude is different. In this master thesis it is tested the effect that had the economic inequalities in the crisis of 1929 and 2008. Moreover, in the paper are refereed the theories that exist for the economic inequalities and the influence that they are believed to have on economic crisis.
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Οι κρίσεις του 1929 και του 2008. Αίτια-αποτελέσματα-σύγκριση : Διερεύνηση σχέσης κρίσεων και οικονομικών ανισοτήτων
