So, what were the causes of the crisis and the consequence? Causes of global financial crisis From the macroeconomic perspective, the crisis has been attributed to the persistence of global imbalances. It is often said that the solution to a previous crisis becomes the cause for the next crisis.
You may recall that the previous crisis was the Asian crisis of 1997–98, and one of the important lessons learnt by the Asian countries was to build a war chest of foreign exchange reserves to fight against the attack on the country’s currency.