The recent financial crisis as a special incident and Chinese government’s response to it are then discussed, including proof of the practice of Keynesian in China, especially the four trillion stimulus package. A critical evaluation is then given, aimed at analyzing the effects of China’s macroeconomi... ... middle of paper ... ...pps/news?pid=newsarchive&sid=aIpq7IF4BM9Q Lucas, R. E., & Sargent, T. (1981). After keynesian macroeconomics. Rational expectationsa and econometric practice, 1, 295-319. Palley, T. I.
The recent financial crisis as a special incident and Chinese government’s response to it are then discussed, including proof of the practice of Keynesian in China, especially the four trillion stimulus package. A critical evaluation ... ... middle of paper ... ...s/news?pid=newsarchive&sid=aIpq7IF4BM9Q Lucas, R. E., & Sargent, T. (1981). After keynesian macroeconomics. Rational expectationsa and econometric practice, 1, 295-319. Palley, T. I.
Finally this paper will look at the trend toward dollarization, and whether or not dollarization is the best solution for struggling economies. This paper contends that the power of globalization is forcing the international monetary community to address these issues. The success of the Euro makes a global currency seem like a logical step in the evolution of currency, even though sentimental attachment to national currency would make a global currency unpopular. Devaluation of national currency is only effective for nation with substantial foreign investment and high technology exports. Dollarization solves many problems for struggling economies in the short term, but at some point these nations should consider joining a Multi-Lateral Monetary Union.
How the Euro Crisis Evolved and how to Avoid Another: EMU, Fiscal Policy and Credit Ratings. Journal Of Macroeconomics 39, 364-374. Rose, A. (2002). One Money, One Market: Estimating the Effects of Common Currencies on Trade.
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Gross Domestic Product. Retrieved from http://www.stats.gov.cn/tjsj/ Organization for Economic Co-operation and Development (OECD). (2000). Main Determinants and Impacts of Foreign Direct Investment on China's Economy. OECD Working Papers on International Investment.
Influenced by the new growth models, developing countries were encouraged to implement trade liberalization under the promise that it will promote faster growth. Many influential empirical papers tried to measure the effect of trade policy or openness on growth and came up with the evidence that trade restrictions have a negative impact on growth. However, the way some papers used to proxy openness >>>>>>.In addition some papers Ignored >>>.Some economists surveyed the literature between the eighties and the nineties on openness and growth and found that >>>>>>>>>>> such as the study conducted by <<< and by <<<<. It is not wrong to encourage out-warded policy but it is wrong to put such a heavy weight on it because that will distract d... ... middle of paper ... ...Economic Development and Cultural Change, 1992, 523-544. Dollar, D., & Kraay, A.
Financial crisis and resulting worldwide depression has at the present moved from containing the infection to precise actions designed at promote improvement and altering policy to stop to reoccurrence of the trouble. There are many financial experts says that the improving economic and financial position might reason rigid improvement of the monetary scheme to be unable to find some grip the crowded policy. “Financial market a place or channel for buying or selling stocks, bonds, and other securities” (O’BRIEN, 2011). Financial market encourage the wide-ranging security of the country at the same time as caring taxpayer interests and facilitate business operation with no creating a ethical risk. For example the New York stock exchanges if people want to hold a share of stock in Microsoft or apple they have own security because they can sell that share in the stock market.
1.1) Moreover, the global imbalances also make capital flowing incorrectly, from developing countries to advanced countries, from advanced countries to other advanced countries. This makes developing countries with fast productivity growth show capital outflows and vice versa, leads to the surplus of developing... ... middle of paper ... ...nces discussed above. Right now, the global economic is recovering, but the study of reasons of the crisis still teaches many countries a lesson on how to build a solid financial system and how to deal with other macroeconomic problems. Works Cited Ferguson et al. International financial stability.