Monday, January 6, 2020

Financial Crisis And Its Effects On Economic Growth

The late half of 1997 and the early parts of 1998 presented the world with one of the world’s most famous financial crises. This financial crisis proved to be detrimental mainly to the south-eastern Asian area, including South Korea, Thailand, Malaysia, Singapore, Hong Kong and Indonesia. The aforementioned south-eastern states recorded astounding economic growth in the preceding decade. The downfall of the economy caused a domino effect in the local markets and currency markets of each country. The nations’ leaders, as a result, had to request assistance from the IMF. Politics were important in creating the financial boom, but they were also guilty of the subsequent consequences. Similar to a number of financial crises in the past, the Asian financial crisis came to be as a result of unexpected economic growth. The countries were all under the influence of a number of different economic criteria, such as cheap yet fairly well educated labour, lowered barriers to trade, and economies based heavily on exports. Even Malaysia enjoyed bountiful foreign direct investment. All of these elements came together to make Asia dominant force in exports. This was proven by the fact that none of the countries affected by the crisis experienced of export growth lower than 12% between 1990 and 1996. Not only did these countries experience rapid growth in exports, the nature of the exports where product types are concerned also changed. The products evolved from simple products likeShow MoreRelatedWhy India Recovered Quickly From The 2008 Global Crisis Essay1594 Words   |  7 Pagesrecovered quickly from the 2008 global crisis? Vivek Shah MBA AF 629 December 12, 2016 Introduction It’s the most heard term about the global economy in the recent years and it’s the year we have been always hearing about its 2008. We all have been a part of it in some or the other way and all the major economies had been affected by the global turmoil which eventually lead to the worst situation after the Great depression of 1929. The sub-prime crisis in USA which lead to great recession whereRead MoreModern Egyptian Economy1526 Words   |  6 Pageswitnessing a series of economic and political reforms since the beginning of the 21st century. Starting from post-Gamal Abdel-Nasser’s era in 1990 several economic reforms and monetary policies have been implemented by the Central Bank of Egypt (CBE) and other economic institutions. The economic reforms started by the Economic Reform and Structural Adjustment Programme (ERSAP), offered by the International Monetary Fund (IMF), in 1991 with the aim of amending the economic imbalance of demand andRead MoreImpact of Financial Crisis on Gulf Area Essay1732 Words   |  7 PagesThe global financial crisis that was experienced in 2007/2008 affected many nations of the world. Some countries such as America and most European countries were hard hit since they were directly affected by the crisis. Other countries especially those in Asia and Africa were not adversely affected as they were not directly hit by the crisis. This crisis started in the United States after the housing bubble busted. Although the bursting of the housing bubble was the main cause of the crisis, there wereRead MoreThe Economic Crisis Of The United States1680 Words   |  7 Pages Although the global economic crisis in 2008 occurred in many countries around the world, it was originally initiated by the United States of America. Being as though the United States is one of the world s most hegemonies countries after its economy suffered from an immense downturn many smaller countries were affected, most specifically the Caribbean. Many countries within the Caribbean were affected greatly by the recession due to the fact that most of their gross domestic product comes fromRead MoreExploring the Contagion and Its Effect on Macroeconomic Conditions1452 Words   |  6 Pageshousing market began to slow, economic growth in the US was put at risk. The banking sector, heavily exposed to houses that were now underwater, by way of their investments in collateralized debt instruments featuring subprime mortgages, began to struggle. The result was a credit crisis, followed by substantial government intervention in the industry. This crisis then spread throughout much of t he rest of the world. The contagion effect was driven by factors such as financial institution connectednessRead MoreAnalysis of â€Å"the Global Financial Crisis: Causes, Effects, Policies and Prospects† Dominick Salvatore, Journal of Politics Society, Columbia University1110 Words   |  5 Pagesof Economics Analysis of â€Å"The Global Financial Crisis: Causes, Effects, Policies and Prospects† Dominick Salvatore, Journal of Politics Society, Columbia University June 2010 Marija Nikolic December 2012 Global financial crises has brought into focus debate about decisions made by the countries which are leading economic forces, making them to reconsider past living standards and habits. With the aim to examine the causes, effects, policies and prospects for the financial crisis D.SalvatoreRead MoreNeoclassical Economics Vs. Keynesian Economics1583 Words   |  7 PagesThe post -Second World War growth period, which is called Golden Age of Capitalism, has a great influence in human economic history. During the period of time, a great many of the capitalist countries have dramatically increased their economy and prosperity, such as United State which has a substantially economic expansion at an average rate of 3.5% annually between 1945 and 1970. Economic growth may be resulted by deregulation of market, rise of automotive manufacture and industrialization whichRead MoreGlobal Financial Crisis : The Fall Of Lehman Brothers1250 Words   |  5 Pages Global banks indeed play crucial roles in keeping the global economic growth in track. The fall of Lehman Brothers in 2008 as the major factor for the economic downturns leading to the Global Financial Crisis, or 2008 financial crisis, proves this point. Started from the irresponsible handling of mortgages of consumers, the prices of houses in America sank. Interest rates fell while capital ratios became lax. It was a case of impending Great Depression. Given its role of lending funds and providingRead MoreThe Financial Crisis And The G20 Essay1456 Words   |  6 PagesIntroduction: The collapse of the financial market in the United States created an accelerated momentum that pushed the global economy towards a detrimental downward spiral during 2008. In response to the crisis, the world’s top economies created the G20 leaders’ forum in order to manage the financial downturn. Although the crisis was somewhat managed by the G20, the Great Recession left the world with a weak and stagnate global economy. The rise of secular stagnation was a viable threat followingRead MoreWorld Economy Individual Assignment :1022 Words   |  5 PagesKayacan Fast economic conversion that Turley experienced after 1980 has made a significant effect on country’s whole economy and especially removal of obstacles in front of capital movements and integration of the country with global economy has increased the importance of financial sector as a whole . But this fast conversion made the economy vulnerable to crisis and Turkish economy experienced two devastating economic crisis in post 1980 era. In this report I will describe most recent economic crisis

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.