英國利物浦大學國際商業留學生課程essay范文-crisis?what crisis?discuss

 

 

 

Introduction 1

Definition 1

Types of financial crisis 1

Reasons of crisis 2

Solution 2

Conclusion 3

Reference 3

簡介1

定義1

金融危機的類型1

危機的原因

解決方案2

結論3

參考文獻3

 

 

Introduction

The global financial tsunami which is caused by the United States sub-loan, have great impact and influence to the world economy. Under the background of economic globalization, any open country cannot avoid the impact of financial crisis, and the financial crisis also has brought a great impact on the world economy.

Definition這是由美國次級貸款引發的全球金融海嘯，對世界經濟的沖擊和影響。在經濟全球化的背景下，任何國家不能避免金融危機的影響，而金融危機也帶來了對世界經濟影響很大。

 

 

Financial crisis refers to a crisis of financial asset or financial institutions or financial market, the specific performance of financial crisis is asset prices fell sharply or the collapse of financial institutions or on the verge of collapse or a financial market fall (James Crotty，2008). 金融危機是指金融資產或金融機構或金融市場的危機，金融危機的具體表現是資產價格大幅下跌或金融機構倒閉或瀕臨崩潰的金融市場下跌（2008年詹姆斯·克羅蒂）。

 

 

Types of financial crisis

According to the IMF classification of 1998 in the "world economic outlook", financial crisis can be roughly divided into the following four types: currency crisis, banking crisis, debt crisis, and systemic financial crisis.

Currency crisis refers to currency speculators greatly due to shocks to the exchange rate depreciation, or the central bank to defend the exchange rate and lead to a sharp increase of interest rate or huge loss of international reserves, thus, multiple currency crisis caused by the international balance of payments and exchange rate changes.

The banking crisis is that if the bank will not be able to pay the debts, forcing the government to provide assistance and massive intervention to avoid the occurrence of default. If a bank crisis development to a certain extent, may spread to other banks, thereby causing the entire banking system crisis.#p#分頁標題#e#

 

 

The debt crisis is refers to the serious confusion of a country's payment system, which is unable to repay debt, whenever sovereign debt or private debt(Brunnermeier, Markus ,2008).

System financial crisis may also be referred to "comprehensive financial crisis", is major financial fields appear serious disorder or serious damage, such as a currency crisis, banking crisis, debt crisis have occurred at the same time, resulting in the loss of function of financial system.

 

 

Reasons of crisis

Recently, more and more people begin to realize, the financial crisis had a more profound complex reason, which is the international monetary system and international financial order exists defects. The cause of global financial crisis is the contradiction between the global reserve currency of International Center and position of state control. Although the United States also pledged to determine the objectives of monetary policy to control inflation, it only pay attention to its’ own inflation, while ignoring the global inflation. This is followed by a large amount of dollars, which laid the monetary system the most important foundation of excess global liquidity and inflation. In a purely free market economies, inflation and monetary asset bubbles, should go through the bad assets write-off, profit reduction, enterprises and financial institutions fail to be eliminated, so that the serious deviation from the value to return, make excessive profits and seriously undermine social rational recovery. (Caballero,2008)However, with the development of global democratization progress, in the financial crisis, the elected government often considerate of political stability, will take measures to rescue the market and stimulate economic development before the bubble has not completely eliminated, which results in the bubble has not completely eliminated, the free market mechanism actually suffered severely weakened. This situation continue to accumulate, eventually must be thoroughly broke out in the government or the national strength can not be controlled, forming a huge impact. 

Solution

 

 

To control the financial crisis, we must establish a new international monetary system and the international financial order, the key is to establish a global circulation, which is not restricted to a single country or region of the "world currency". Establish the world's central bank which is responsible for the management of the world currency, as well as the world currency settlement system or organization. It can learn from the euro and the International Monetary Fund "SDR" experience, encourage monetary asset holder into the currency of the world. In order to solve the contradiction between the global circulation and reserve of International Center and money supply regulation by the sovereign state, avoid a single country or regional organizations to pursue their own interests and release excessive monetary, making the world monetary monopoly profits to the global total.

Conclusion

 

 

This paper expounds the background of financial crisis, combined with reading the article, giving the definition of the financial crisis, and introduces the types of financial crisis and the reasons of financial crisis, proposed solutions to the financial crisis at last.

 

 

Reference

1 James Crotty，2008，Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’， Journal of Economics

2.Brunnermeier, Markus http://www.ttc-switch.com/Assignment_Writing/  2008 “Deciphering the 2007-08 Liquidity and Credit Crunch,” 

Journal of Economic Perspectives, forthcoming. 

3.Caballero, Ricardo and Arvind Krishnamurthy 2008 “Musical chairs: a comment on the 

credit crisis,” Banque de France, Financial Stability Review, No. 11, February.