The essay is a critique about the effect of financial crisis in Asia and its implications on macroeconomic perspective. The first theme of financial crisis is about financial regulation and supervision. The main issues in this concept are related to impact of crisis in East Asia. The down turn in Asia was larger than expected in the history of Asia and this resulted to various implications on individual and institutional level.
Another area of concern is the implication of the recent financial crisis in the banking sector and stock market. The essay provides an overview on how financial markets especially trading of stocks and issuance of loans was affected by the credit crunch. A review on the external shock that fed throughout Asia and its implication on domestic demand are also discussed.
The essay shall be a discussion on the financial regulation and supervision model in relation to risk management. Regulation of financial markets and capital adequacy is another area of concern addressed in this essay. Causes of the financial crisis and sustainable measures to counter the implications of the crisis are area of concern. Policies related to medium term sources of growth in the entire Asian continent. The final part of the paper is to elaborate on reserve accumulation and measures taken to improve representation on emerging and developing nations. The final part of the essay is about the concluding remarks as per the current economic situation and the effect of financial regulation.
The present global financial crisis started in 2007 and yet, it continuous to unfold and nobody can really say that the economy of the world has already hit bottom. The US stock market has been hardly hit and t...
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...” (Washington, D.C., World Bank).
Obstfeld, Maurice, and Kenneth Rogoff (2009). Global Imbalances and the Financial Crisis: Products of Common Causes. University of California at Berkeley / Harvard University - mimeo.
Philip R. (2007), Regulation of International Finance, Sweet & Maxwell Ltd.
Turner, Adair (2009): “The Financial Crisis and the Future of Financial Regulation”, speech at The Economist’s Inaugural City Lecture, January.
UNDP (1999). Human Development Report 1999 (New York, Oxford University Press).
World Bank (2007). East Asia & Pacific Update - 10 Years after the Crisis (Washington, D.C., World Bank).
The World Bank Group, 2009, Impact of Global Financial Crisis on South Asia [online], South Asia Region. Available from http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546-1171488994713/3455847-1232124140958/gfcsouthasiafeb172009.pdf.
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