• Home
  • Subjects
  • Finance & Accounting
  • In the light of these( moshirian& long-staff) and other relevant articles, critically evaluate the reasons for the recent global

In the light of these( moshirian& long-staff) and other relevant articles, critically evaluate the reasons for the recent global - Essay Example

Only on StudentShare

Extract of sample
In the light of these( moshirian& long-staff) and other relevant articles, critically evaluate the reasons for the recent global

The third one includes the multiple misunderstood innovations in financial engineering, which, in turn, include sub-prime mortgages, credit default swaps, new forms of securitization, and lack of responsibility in large private financial institutions, which operate globally. Many analysts conclude that the crisis was because of poor financial engineering innovations and failures in the financial sector regulations and supervision (Moshirian 2011, 502; Casu et al. 2006, 58). Fiscal policy in the United States led to low saving rate and monetary policy, which was persistently simple (Casu et al. 2006, 58). Other countries affected by monetary policy problems include several countries in Asia, the United Kingdom, Switzerland and some countries within the Euro zone, which had issues with the real interest rates. Many countries, like Korea, had policies that led to large amounts of foreign exchange reserves. The policies also led to global imbalances and distortion of international adjustment process. These reserves put pressure on the macro-economic policies of many countries including the U.S. global imbalances phenomenon. This, however, was not a main cause of the recent economic and financial crisis. The imbalances and the crisis happened simultaneously as a result of faults in design and implementation of macro-economic policies in the world. This led to increase in global credit. ...
Download paper

Summary

The Reasons for the Recent Global Financial Crisis and number Date submitted The Reasons for the Recent Global Financial Crisis Introduction The causes of the recent global financial crisis fall into three broad categories and several sub-categories…
Author : lednerbeaulah

Related Essays

Reasons for the recent global financial crisis
8 pages (2008 words) Essay
Identify and Evaluate the Sources of Long-Term Finance Available to the Company
4 pages (1004 words) Essay
The Recent Global Financial Crisis
6 pages (1506 words) Essay
For And Against Regulation And In The Light Of This Evaluate The Strengths And Weaknesses Of A Regulatory
9 pages (2259 words) Essay
other
4 pages (1004 words) Essay
other
4 pages (1004 words) Essay
critically evaluate budgeting as a tool for planning and control.
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!