1. Introduction

The 2008 global financial crisis is considered by many economists to be the worst one since the Great Depression of the 1930s. The initial sign of the crisis actually started in mid-2007, which broke out with the Lehman Brothers’ financial troubles in September 2008. Unexpectedly, what started off as sub-prime mortgage problems in the financial sector of the United States snowballed into the deepest and most widespread financial and economic crisis that disrupted global financial markets in decades. The spreading financial turmoil has resulted in a number of financial institution failures; first in some advanced countries, then in developing ones. World political leaders, national ministers of finance and central bank directors coordinated their efforts to reduce fear (please refer to Appendix A for meetings held by world leaders), but the crisis continued and eventually led to a global currency crisis. During this period, economies worldwide slowed, credits tightened, international trade declined, and business and consumer confidence eroded with enormous and rapid job losses.