We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Outline the way that China has been affected by the recent financial crisis of 2008 and subsequent recession. Explore their econ - Essay Example

Comments (0) Cite this document
[Your Name] Outline the way China has been affected by the recent financial crisis of 2008 and subsequent recession. Explore the economic, political and socioeconomic consequences. Assess the intervention and response of the government and evaluate if these have been adequate from your point of view…
Download paper
Outline the way that China has been affected by the recent financial crisis of 2008 and subsequent recession. Explore their econ
Read TextPreview

Extract of sample
Outline the way that China has been affected by the recent financial crisis of 2008 and subsequent recession. Explore their econ

In 2008, the problem was in the sub-prime market in major investment banks in Wall Street. The turning point in 2008 in the crisis was the fall of Lehman Brothers. The world was soon involved in this crisis as many government rushed to implement nationalization policies in their countries to prevent further damage. A number of bad debts also arose during this period because there was a great deal of selling of financial assets with the mortgages that were given out and they were sold all over the world but this became a complex procedure as more and more countries were lending and banks and other financial institutions did not have an idea as to how far in the globe their loans were going. A credit crunch arose in the world which led to a break in the lending system in the world as there was no money to give. This had a detrimental effect on the entire world’s economies including China (Krugman 2009). A fall in output occurred due to the burst of this real estate bubble. This lead to nationalization all over the world as aforementioned and governments made failed attempt after failed attempt to assuage the situation. The government injected more and more money in the economy because demand had fallen and banking systems were trying to hold on. Chinese government increased their spending as well as made tax cuts wherever they could in order to improve the situation of the economy (Soros 2008). The focus of economies including China shifted in two ways. The debt was the responsibility of the public not the private sector since the government had nationalized the economy. And finance was no longer the epicenter, it was the government. Bankers were unwilling to lend and buy bonds because they were fearful of the future due to the crisis. Therefore the financial markets continued to worsen in 2009. China seems to be doing well after just a short duration of time while the other countries are still suffering the blows of the crisis. China in fact had growth of double digits even though it is vulnerable to the changes in the economies of the world. The government in China had to inject money equal to 14% of the GDP in order to boost the economy when the markets in US and Europe fell and they didn’t demand any exports. Social aspects of this injection was relatively little, only about 20% of this stimulus, and the rest went to investment in fixed asset such as concrete, steel and this also lead to the world’s speediest rail system being built in China. Even though this sector was working with excess capacity, the government considered this action to be the correct one (Goodstadt 2011). In 2009 as well, China underwent its own real estate bubble. In this bubble, the prices of apartments shot up by 50 to 60% of their original price, especially in Shanghai and Beijing. New complexes that were being built were abandoned because demand was falling, and so there were half built places all over the country, and there was no sign of growth as no one was constructing which is the first step in order to have a house to sell (McLean & Nocera 2010). The prices of houses were also way beyond the incomes of people and households in the economy. This lead to expansion of credit in China, but one which was cheap, and wages were bogged down artificially so that household transferred their income to businesses and rather than consuming, ... Read More
Cite this document
  • APA
  • MLA
(“Outline the way that China has been affected by the recent financial Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/76394-outline-the-way-that-china-has-been-affected-by
(Outline the Way That China Has Been Affected by the Recent Financial Essay)
“Outline the Way That China Has Been Affected by the Recent Financial Essay”, n.d. https://studentshare.net/finance-accounting/76394-outline-the-way-that-china-has-been-affected-by.
  • Cited: 0 times
Comments (0)
Click to create a comment
2008 Financial Crisis
2008 Financial Crisis Until the start of the financial crisis in August 2007, the world was experiencing strong economic growth (Obstfeld & Rogoff). Investors and consumers were optimistic in their expectations, which reflected itself in high consumption and investment rates.
11 Pages(2750 words)Term Paper
Global Financial Crisis in 2008
This Global Financial Crisis indeed had a dreadful effect on the international economy. So, in many countries, key players within economies such as stock markets as well as large financial institutions did succumb to the effects of global financial crisis.
8 Pages(2000 words)Essay
The Recent Global Financial Crisis
The primary cause of the global recession could be addressed to the collapse that occurred in the sub-prime mortgage market in the United States (US) accompanied by turnaround of housing as reported by several other economies. The impact of the global economic crisis not only affected the financial institutions but the livelihood of almost everyone to some levels or the other (Shah, 2010).
6 Pages(1500 words)Essay
2008:2012 Spanish financial crisis
2008–2012 Spanish Financial Crises Introduction Most economists agree that the 2007-2012 global financial crisis was the worst since the 1930’s Great Depression. The crisis was characterized by the threat of complete collapse of large financial institutions across the world, downturns in stock markets across the world, bailing out of banks by national governments and general slow-down in economic growth and development around the world (Shiller 35).
13 Pages(3250 words)Essay
The US financial crisis of 2008
As from 2007, maintaining financial stability, rather than taming inflation was the Federal Reserve's main goal (Jickling 1). Although the Federal Reserve tried to manage the emerging crisis, the issues present were so complex, such that they defied conventional solutions.
5 Pages(1250 words)Essay
The Financial Crisis of 2008
The elite had more disposable incomes, pumped credit into the markets, encouraged innovative credit instruments in the market and also helped keep the interest levels low. With their wealth, the financial bigwigs were able to influence ideology; and everyone, including the government was ready to follow their ideas.
3 Pages(750 words)Essay
Economical changes during 2008-09 financial crisis
The global financial market is heading towards a collapse if necessary measures to resolve financial crisis is not taken by the authorities, not only in US but also in other countries facing the same situation. The present paper is
7 Pages(1750 words)Essay
How has the financial crisis of 2008 affected the real estate market in Dubai

There are three main objectives that formed the foundation for this study:

  1. Identify the main factors that adversely impact the Dubai real estate market as a result of the 2008 financial crisis.


  1. Investigate the method of recovery utilized by the real estate industry as a whole in Dubai.


  1. Point out the current climate of the real estate market in Dubai and assess its future potential for growth.
38 Pages(9500 words)Essay
2008 financial crisis
However, at a time when the future seems to be drawing even closer, that realization seems to be fading and this worries me. In the face of these challenges, I am forced to gauge my own prospects
7 Pages(1750 words)Essay
Causes of 2008 Financial Crisis
According to Wallison (2009), key issues that led to the crisis included increment and sudden reduction in house prices as well as increases in default rates in 2006. Furthermore, the collapse of stock prices in 2008 speeded by Bear and Lehman’s failures fuelled the crisis (Wallison, 2009, p. 3).
4 Pages(1000 words)Essay
Let us find you another Essay on topic Outline the way that China has been affected by the recent financial crisis of 2008 and subsequent recession. Explore their econ for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us