Working Papers 968. European Central Bank. Retrieved from http://www.ecb.europa.eu Shleifer, A., & Vishny, R. W. (2009). Unstable banking. Journal of Financial Economics, 97, 306-318.
Housing inflation were inversely related to both foreclosure and delinquency rates. The rates dropped drastically over the years which led to increased house prices that almost collapsed the mortgage programs. As a result of the crisis in subprime mortgages, the Troubled Asset Relief Program (TARP) program was introduced in the beginning of October 2008 by the United State government that enabled the purchase of equity and as... ... middle of paper ... ...s that had surpluses back to the country. Works Cited Kaminsky, G., & Reinhart, C. (1999). The Twin Crises: The Causes of Banking and Balance of Payment Problems, American Economic Review, 89, (3), 473–500.
This financial crisis also referred to as the great recession was triggered by liquidity problems in the United States economy. Many large financial institutions collapsed according to Geczy (2010). The government had to bail out some banks and this resulted in a decrease in the stock and money funds investments in the United States and spread on all across the globe. A report compiled by the U.S Financial Crises Inquiry Commission shows that the infamous global crises could have been avoided. It pointed out that failure in different financial institutions including the Federal Reserve accelerated the crises.
Online Newshour Forum: The State of the Stock Market--October 28, 1997. PBS, 28 Oct 1997. 4 Dec 2001 <http://www.pbs.org/newshour/forum/october97/crash_10-27.html>. "Issues and Controversies: Asia’s Economic Crisis." Facts on File: Issues and Controversies.
In the late 2000s, the World suffered from a big global economic crisis which caused “the largest and sharpest drop in global economic activity of the modern era”, in which “most major developed economies find themselves in a deep recession”, according to McKibbin and Stoeckel (1). Because its consequences have a very big impact to the whole world, many economists and scientist have tried to find the causes of the crisis; and some major causes have been emphasized are greed, the defection of the free market system, and the lack of prudent regulation and supervision. This essay will focus on the global imbalances, one of the most important causes of the current economic crisis. Many researchers have pointed out that the global imbalances are the root of the recent financial crisis. Portes claims that “the underlying problem in international finance over the past decade has been global imbalances, not greed, poor incentive structures, or weak financial regulation, however egregious and important these may be.” (2).
In figure 1, the results of the crisis on some countries are shown. To be precise, from that figure we can see large declines in GDP growth rates and stock markets in 2008-2009. So, the crisis in the US spread very fast across the globe. Figure 1: Reaction to the global financial crisis (Sharma 2013, 4) Impact of the crisis on Singapore Large declines in economic parameters were seen in trade-oriented countries, like Singapore. The reason for that is its trade balance, which is one of the main sources for economic growth in Singapore.
National Bureau of Economic Research - Boasson, V. (2012) The 2007 – 2009 Global Financial Crisis: A research Synthesis. Sigillum Universitatis Islandiae. - Glick, R., Hutchison, M. (2011) Currency Crises. Federal Reserve Bank of San Francisco Working Papers. - Havranek, T. , Rusnak, M. , Smidkova, K. , Vasicek, B.
Journal of Banking & Finance, 37, 103-117 Mishkin. F. C. (2009). The Financial Crisis and the Federal Reserve. NBER Macroeconomics Annual, 24, 495-508 Mullard, M. (2012). The Credit Rating Agencies and Their Contribution to the Financial Crisis.
URL: http://www.bea.gov/ American Factfinder provides economic information about households, cities and counties. URL: http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml Availability of substitutes Investopedia provides information about substitutes of products and services. URL: http://www.investopedia.com/features/industryhandbook/retail.asp Company websites provides information on new entrants and competition. Kraft Fo... ... middle of paper ... ...port for The Kraft Corporation. Retrieved from Pandora Group website: http://economics-files.pomona.edu/jlikens/SeniorSeminars/pandora/reports/kraft.pdf Investopedia (n.d.).
Taylor, J. B. (2009). The financial crisis and the policy responses: An empirical analysis of what went wrong (No. w14631).