The present economic world is suffering from a large number of economic issues which have subdued in the past few years. These issues haven’t effected any single nation, but, they have led to a numerous problems in the entire world. Some of these issues are so vast that they have led to the situation of crises in the world. One of the most important economic issues which has created havoc in the world is the international financial crises. There are varied financial crises at each and every level in the economy. Thousands of people who expect that there standards of living would substantially rise, eventually leads to the fall of the living of standards. Millions of children in different parts of the world have to leave there education due to the financial crises. Also, on the national and international level, hundreds to billions of dollars of wealth goes away. The financial crises in the recent times have been so vast that there has been averted question mark on the stability of the nation (Obstfeld & Maurice, 2012). In this research paper, the international financial crises have been studied in detail. The issues which has been addressed includes the sources of the financial crises in the world, the roots for the emergence of the financial crises and the ways by which the system or the governance should be design so as to avoid the financial crises in the world. In the end of the research we will be studying various responses towards the financial crises and the need of the international community and the national policies.
Financial and the monetary systems of the nations have been designed in order to have the improvement in the efficiency of the financial system of the nation. There have been a number of theories which are related to the international financial development in the world leading to the economic growth and advancement. In the last five years, there has been a major turmoil in the world (Calomiris, et al., 1991). A sharp decline in the financial status of the leading organizations in US and Europe has led to the financial crises.