Financial crisis: analysis of theoretical approaches and empirical research

The global financial crisis of 2007–2009 and its aftermath served as painful reminders of the multifaceted nature of crises. They hit both small and large countries, as well as the poor and the rich. It can be determined that crises represent a threat to equal opportunities.First, crises can have internal or external roots and come from the private or public sector. They come in many shapes and sizes and can spread quickly across borders. They often require immediate and comprehensive policy action, call for major changes in the financial sector and fiscal policy, and may require global policy coordination. The consequences of financial shocks can be significant and strongly influence the conduct of economic and financial policy. A careful analysis of the consequences of the crisis and the best measures to respond to it have become an integral part of the current political debates of each state in order to build means of operational and strategic response.Secondly, crises at a certain level are extreme manifestations of the interaction between the financial sector and the real economy. Thus, understanding financial crises requires an understanding of macro-financial relationships, which is indeed a difficult task.In the most general sense, a crisis is a period of significant difficulties and danger or a peak moment of financial instability, when characteristic changes take place in relation to further recovery at a new qualitative level.A financial crisis is a state of the financial system that is realized as a result of its imbalances and under the influence of external shocks and is characterized by serious violations in the performance of the system.The purpose of the study is to review methodological approaches to the study of financial crises for further modeling and empirical research.The object of research is financial crises as an economic phenomenon.The theoretical basis of the research is statistical data and models of financial crises in the world economy built by various scientists.Among the obtained research results is the analysis of theoretical approaches and models of financial crises at the world and national levels.