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Uk Financial Crisis Case Study

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United Kingdom is one of the strongest economies in the contemporary world. Its economy is one of the largest in European Union, as well as in the whole world. It is not surprising though, for a simple reason that United Kingdom was the first to country to take the path towards industrialization. Hence, for a long time UK was the flagman of the world. Especially is was evident during the colonial times, when UK had one of the strongest felt and enjoyed enormous number of overseas possessions. Even after UK had lost all of them in the twentieth century, it continued to grow and develop. Twentieth century was a time of ups and downs for UK economy. Sometimes economy required tough decisions which were brought by Margaret Thatcher. Other major decisions were concerned about joining EU, along with UK possibility to adopt Euro. All in all, UK had faced numerous challenges for the past centuries. One of the most recent problems UK had to deal with was a 2008 economic crisis. So, how did the UK's financial system respond to the crisis? To start with, in short, financial system of UK consists of the Bank of England being in charge of the financial sector in the country and private banks operating under its control. UK's currency is pound which has a floating exchange rate. Knowing that, now it is needed to explore the reasons for crisis, as well as discuss additional factors which caused turmoil in the UK economy. Causes Reasons for the financial crisis in the UK were similar to the ones in the rest of the world. The housing bubble which had burst left ordinary citizens with very high debts. However, things were far more …show more content…

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