Keywords: financial crisis, economic crisis, sustainability, commodities, economic growth, limits to growth, economic development, sustainable development, price rises, global financial system, real economy
Economic growth and economic crisis
This article argues that the recent financial crisis was caused largely by the long-term problem of the current world economy lacking a sustainable path of development. Limits to growth – expressed principally through rises in the price of oil and other commodities – created a crisis for the global financial system, which has been based essentially on the assumption that economic growth will continue indefinitely. A mismatch was thereby created between the 'real economy' and the finance sector.