Another Economic Crisis ?

World’s economies are in the test now. All countries’ economic systems are falling down in different rate. The main cause is the collapse of the U.S. financial system. Many major financial organizations collapse after their capital they invested in subprime mortgage and their derivatives got default. Many analysts forecast the effect will be greater in the next periods. Indonesia has already felt the effect of the crisis. The Indonesia Stock Exchange has already free fallen and still not fully recovered. Many stock players got depressed because the sharp declines of their stocks prices and the companies which release their stock are also felt the crisis because their investor flied their investment to other countries. This crisis also affected Indonesia’s export. Indonesia’s exports were fallen for sometimes before it rose again after government put its hands on it. People also felt the general prices jumped continuously, called inflation, in a very big rate. All of that are the consequences of open economy that applied by Indonesia, if one country’s economic collapse especially the big one such as U.S., Europe, other countries will get the effect too. That effect called contagion effect. So now, we only could hope our government’s economic team could set strategies that will protect Indonesia from economic crisis like the one that happened in 1998.