Martin stated five adverse effects on the financial crisis.

First, "The crisis has

lowered economic output vastly below the pre-crisis trend." In the situation of the UK, their
GDP during the second quarter of 2018 was 18% below its pre-crisis trend. Because of
which, sharp declines happened in productivity. Also, It is speculated to be impossible to
return to the pre-crisis trend, but at the same time possible because the UK can regain
much of what it has lost despite the length of time it will take to get back to that point.
Second, "The crisis has had dramatically adverse fiscal consequences." It is stated in the
first effect, UK's GDP became lower due to the crisis; however, take note that UK's public
debt was lower compared to the GDP before the crisis hit them, and they had the choice
to use fiscal policy, but they did not. However, knowing that they are low, the UK did
implement immediate austerity despite the consequences. Third, "the crisis had greatly
affected the operation of the monetary system." Because of that effect, it has lowered the
power on monetary policy as the principal tool of macroeconomic policy. Not only that,
highly aggressive monetary policy failed to sustain pre-crisis levels of credit and money.
Many solutions could have been done to help better the financial system even from the
start of the crisis. The Chicago plan was an idea made in the 1903's where it was a
collection of banking reforms suggested by the University of Chicago economists in the
wake of the Great Depression. Other ideas, such as "100 percent reserve banking"
favored by Irving Fisher and Milton Friedman. Fourth, "the crisis has revealed the extreme
fragility of the contemporary financial system and the economy with which it is intimately
intertwined." People are blinded by the fact that the purpose of the rules is to preserve
the system that lived before the crisis. However, even if the main goal is to preserve the
global, complex, and highly leveraged pre-crisis financial system, the trust between
finance and authorities is already broken.

There are many ways if we do want to preserve the system that existed before the crisis.
Also, the most important recommendation is a significant increase in capital requirements,
unweighted for risk, to a minimum of 10 percent of outstanding assets. Nevertheless, all
these are effective if only we want greater globalization and financial. Lastly, the fifth, "the
crisis puts into question the pre-crisis conventional wisdom, particularly on monetary
policy." Monetary policy has undergone too many adverse situations that it does not seem
able to be implemented or done correctly. What we need now are more radical ideas,
ideas that will make a change in the financial sector. The case for a radical transformation
of the banking sector is strong.

The financial crisis is one thing that leaders of every nation avoid and fear of
happening to their country. However, no matter how good one is as a leader, these things
can still possibly occur. In the case of the UK, the gross domestic product was 18 percent
below its pre-crisis trend in the second quarter of 2013. Drastic declines have been
experienced by this country, such as productivity, relative to pre-crisis trends. A financial
crisis would mean many things, such as loss of GDP, an increase in debt, and many
more. Us Filipinos have also experienced this, in the 2008 Global Financial Crisis, Since
the Philippines is a developing country that depends on import and export goods, has
affected the currency exchange rate between USD and PHP. 10 Barangay outposts were
set by officials to monitor the effect of this on poverty and shows that it has affected the
people of our nation by a lot.

It is known that the Philippines ranks 29th when it comes to the GDP, and suffers
from poverty and a financial crisis. According to Global Network Perspectives, the
Philippines managed to stabilize the annual inflation rates of 3-5% for the past eight years,
suggesting that the Central Bank has succeeded so far in controlling the financial risks
and the macroeconomic sector of the country. It was also mentioned that possibly,
political factors lead to the financial crisis as compared to the economic factors such as
the war on drugs becoming a distraction on international flows and trade. Moreover, the
rapid rise in food and fuel prices highly contributed to the surge in inflation in the country.
These are just some of the situations that make up the financial crisis.

In order for the Philippines to improve and work on the current financial crisis,
regional central banks need to stay alert and make sure that the financial sectors are
stabilized. Banks play a significant role in the financial crisis because their
implementations profoundly affect the turnout of the overall economy. On the other hand,
education also plays a significant role in the country being globally competitive. If more
Filipinos have higher-paying jobs, they would also contribute to the economy rather than
be a part of the poverty sector. The Philippines should also invest in reviving its old
infrastructure, especially in Manila such as when it had "little Venice", Escolta, Intramuros,
other streets with rich culture and long heritage, buildings, bridges, lamp posts, and the
like. This is since it used to have high value and look nice but was not maintained. If these
infrastructures are rebuilt or redesigned, it can compete globally.