the effects of domestic and international financial liberalization on the economy in terms of financial fragility and risk factors. discuss the mechanisms which generate the cycles of boom and bust after international financial liberalization
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the effects of domestic and international financial liberalization on the economy in terms of financial fragility and risk factors. discuss the mechanisms which generate the cycles of boom and bust after international financial liberalization.
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- Explain the statement: “ The Asian financial crisis was intimately related to foreign trade”Explain briefly why yield curve is viewed as a useful indicator of the stance of a country's monetary policy.Considering the following statements, which one is true that represents a financial outflow from the U.S. economy? A) Returns paid on U.S. investments in France B) A U.S. citizen investing in foreign assets in Japan C) A Chinese investor buying property in Huntsville, Alabama
- During the 2007-2009 period, the US government made its most dramatic interventions in financial markets since the 1930s. It has been argued that the current crisis could redraw the boundaries between government and markets. For some, “freer and more flexible markets will still do more for the world economy than the heavy hand of government” whereas for others “big banking crises are ultimately solved by early and decisive government action and financial regulation.” Evaluate these positions.Which of the following statements are correct? Global economic crisis in 2009 was caused by volatility of financial markets in Latin America. Global economic crisis in 2009 hit advanced economies more severely than developing countries. Financial crises are often unpredictable. The existence of a fixed exchange rate system is one of the conditions of Mundell Trilemma.Explain Debt Crisis and Asian Financial Crisis briefly.
- Critically examine how recent interest rate policy and quantitative easing operations via short term international money markets have impacted international capital markets and stock prices.Describe three scenarios that could describe economies in very different situations, with regard to their banking systems and price (in)stability.If the economy enters a recessionary gap, then incomes in the economy decrease, which reduce income tax revenues earned by the government. When the economy enters a recession, unemployment compensation increases due to an increase in jobless claims. In other words, the government budget deficit increases. Begin with the open economy financial market in equilibrium. What will happen to the U.S. savings and net capital inflow function if the U.S. budget deficit increases? What will to the investment function if the U.S. budget deficit increases? What will happen to the real rate of interest if the U.S. budget deficit increases? What will happen to the quantity saved/invested if the U.S. budget deficit increases? Given the change in the level of savings, what would happen to the level of consumption?
- Before the establishment of the Federal Reserve, the financial system operated under the Gold standard, and consequently there was very limited government intervention in case of a recession or economic disruption. Please elaborate about how, in the case of the financial system operating under the Gold Standard, the 2020 economic disruption would affect the US economy. Please provide specific examples of industries and their impact on the size of the GDP decline and the subsequent recovery.Make forecasts of what monetary policy will do and also forecasts of GDP growth and primary fiscal defcits for UK. Give a sovereign debt sustainability analysis for UK. Calculate the trajectory of sovereign debt to GDP for the UK based on these forecasts.Do Foreign Currency derivatives such as futures, options, and swaps have an impact on the risks associated with international finance?