Dear Ann Na,

I issue of macroeconomics of the global economy is mainly studied in the field of analyzing the sources of global financial and economic crises. In my opinion, global financial and economic crises have a significant impact on the formation of macroeconomics in the world by introducing significant disruptions in capital flows and international trade, which often leads to recessions. The 2008 financial crisis, for example, led to a decline in GDP and increased unemployment in many countries, resulting in changes in economic policies. New regulations, such as Basel III, aimed to improve the stability of banks after the crisis by introducing capital requirements. These crises also affect investor and consumer confidence; during times of economic uncertainty, spending and investment fall, further dampening economic activity. The example of the COVID-19 pandemic illustrates how the global decline in confidence affected the financial decisions of companies and citizens. Crises also have a long-term impact on social inequality, worsening the situation of the poorest, which can lead to social tensions. In addition, they are catalysts for long-term changes in the structure of the economy, accelerating processes such as digitalization. In the context of global economic crises, their impact on economic, social policies and the long-term development of the world economy is indisputable, as they shape not only current phenomena, but also future models for the functioning of economies.

My research shows that recent financial and economic crises, including the 2008 crisis, the 2020 pandemic crisis and the increase in inflation from 2021, are the result of complex interactions of various factors. The 2008 crisis was mainly the result of excessive real estate speculation and poor risk management by financial institutions, which led to serious consequences in the banking system. The COVID-19 pandemic in 2020, on the other hand, caused global closures and a decline in GDP of 3.5%, according to the International Monetary Fund (IMF). The 2022 commodity crisis and rising inflation, which in the US reached its highest level in 40 years, were linked to disruptions in supply chains and rising energy costs. Political factors, such as armed conflicts, can also lead to economic destabilization, as evidenced by the rise in commodity prices following the war in Ukraine. In addition, inappropriate economic policies, including misguided interest rate decisions, can be a source of crises. In the face of future challenges, such as climate change, more economic crises could occur, and the impact could be drastic, estimated at about $2.5 trillion a year by 2050. The key to avoiding future crises is to understand the complex interactions between economic, political and environmental factors and to take stabilization and sustainability measures.

Based on my research, I conclude that building a global economy based on sustainability and a green circular economy can significantly contribute to solving key international problems, including climate, economic and social crises. A green circular economy that focuses on minimizing waste and optimizing resource use can help reduce greenhouse gas emissions, which is important for slowing climate change. Research by the International Energy Agency indicates that implementing these principles in carbon-intensive sectors, such as the chemical industry and steel production, can reduce CO₂ emissions by about 45%, with significant environmental benefits. The transition to a green economy also promotes social stability and job creation, as evidenced by a World Economic Forum analysis predicting the creation of 24 million jobs by 2030 in sustainable sectors such as renewable energy and recycling. In addition, the circular economy promotes financial stability by reducing the risks associated with investments in carbon-intensive sectors and fostering long-term, predictable investments that currently attract more capital than the fossil fuel industry. Balancing the global economy through sustainable models that take natural resource management into account is also key to preventing commodity crises and fostering more resilient supply chains, better able to respond to external disruptions such as the COVID-19 pandemic. Overall, a sustainable and green circular economy lays the foundation for a resilient economy that reduces the impact of environmental, social and financial crises while fostering the development of more stable, predictable and resilient economic structures around the world.

In addition, I also study the issue of economic globalization and its macroeconomic and other determinants.

In view of the above, in the context of locally, internationally and globally developing various crises, it is necessary to develop international cooperation to solve global problems and various types of crises.

Key aspects of the negative effects of the progressive process of global warming and the associated necessary acceleration of the processes of green transformation of the economy in order to decarbonize the economy, slow down the process of global warming, protect the climate, biosphere and biodiversity of the natural ecosystems of the planet I described in the article:

IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVELOPMENT AS A KEY ELEMENT OF THE PRO-ECOLOGICAL TRANSFORMATION OF THE ECONOMY TOWARDS GREEN ECONOMY AND CIRCULAR ECONOMY

Article IMPLEMENTATION OF THE PRINCIPLES OF SUSTAINABLE ECONOMY DEVE...

I invite you to join me for scientific cooperation on this issue,

My warmest greetings,

Dariusz Prokopowicz