This document discusses the Asian Financial Crisis of 1997-1998 and whether it served as a precursor to the global financial crisis of 2008. It provides background on the Asian Financial Crisis, including that it started with the depreciation of Thailand's currency and spread to other Asian countries. It also reviews literature on the causes of the Asian Financial Crisis, including financial liberalization, currency mismatches, and weak government regulation. The document examines debates around whether lessons were learned from the Asian Crisis and the role of the Washington Consensus policies in the crises.
DARI REVOLUSI MELALUI REFORMASI MENUJU INDONESIA SEHARUSNYA Rian
The document discusses the financial crisis in Indonesia from 1997-1998 and its aftermath. It analyzes the sources and development of the crisis, including monetary, economic, social, and political dimensions. It examines the crisis' impact on unemployment, income, and GDP. The crisis marked a transition from the New Order government to a period of political reform. Solutions discussed include improving human resources, information systems, public services, and implementing good governance through a strategy focused on excellent return on services.
This document discusses the causes of the 1997 Asian financial crisis. It outlines two main arguments about the causes: fundamental weaknesses in Asian economies vs. financial panic and lack of a lender of last resort. It also discusses the roles of the IMF and Malaysia's response. The purpose is to review the key causes, compare the IMF and Malaysian strategies, and identify lessons learned.
A Case Study Analysis on the Asian Financial Crisis of 1997 and Zapa ChemicalsSadman Ahmed
Asian Financial Crisis of 1997:-
The Asian crisis was one of the worst financial disasters in the history of Thailand. The investors moved away large sums money away, inflation spiraled out of control, and it ultimately put pressure on the exchange rates of the Baht. Due to Thailand’s problems alone, the effect of the crisis spread along different countries in Asia. The impacts prove how integrated the economies of today are. Much of the fault lies on the failed policies of the government and weak regulatory regime.
Zapa Chemicals (risk management)
The exchange rate exposure and the legal hurdles can be quite a burden when transferring funds across the borders. In the case of Zapa Chemicals, the tax filing problem did not help them to transfer funds. They didn’t know when exactly the funds would be available for receiving. The risk management of the firm is quite a hefty task for foreign companies to successfully pursue.
This paper attempts to confront various theoretical and empirical approaches to the East Asian currency crisis in 1997, but also with emphasis on two recently dominated literature about East Asian financial crisis. One, strongly supported by Corsetti, et. al (1998) stresses fundamental weaknesses, particularly in the financial sector. The other explains the crisis as the problem of illiquidity and multiple equilibria or 'herd behaviour' [Radelet and Sachs, 1998]. These two controversial articles facilitate the main exchange of ideas about the evolution and causes of the collapse of these economies which were viewed initially as very successful on their way to development and integration with the global economy. An econometric probit analysis was done in order to establish the most important determinants of the currency crisis in East Asia. The results were mixed (the probit modelling turned out to be very sensitive to changes in sample size, introduction of new variables and brought up an important issue of causality, the solution of which, or at least limitation of the problem, requires an inclusion of lagged variables in the model), but at least it showed that this type of exercise without further sensitivity analysis could not support Radelet and Sachs' (1998) panic scenario of the Asian meltdown. If anything, it rather pointed to fundamental problems existing in these economies.
Authored by: Monika Blaszkiewicz
Published in 2000
A close look into the financial crisis and financial market volatilityAlexander Decker
This document discusses the causes and history of the global financial crisis that began in 2007. It provides definitions of financial crisis and reviews related literature on previous crises and the current one. The causes of the 2007 crisis included easy credit conditions, the US subprime mortgage crisis, global imbalances, inadequate exchange rate flexibility, loose monetary policy, complex derivatives, regulatory weaknesses, and Basel I capital requirements. The crisis originated from the US subprime sector in 2007 and spread globally after the 2008 collapse of Lehman Brothers. It compares the current crisis to the Great Depression but finds it has different characteristics and wider impact across economic factors.
Political economy of asian financial crisisguitarefolle
1) The 1997-98 Asian financial crisis was a major shock to the region and economists, as countries like Thailand, Indonesia, South Korea and Malaysia experienced currency crashes and deep recessions.
2) There were debates around the causes, with some arguing it was due to macroeconomic issues like overvalued currencies, while others emphasized speculative attacks and contagion from country to country. A third view cited weaknesses in Asian financial systems and corporate sectors.
3) The crisis raised questions about the political economy factors in the region, including close business-government relations, levels of transparency, and how countries managed the adjustment processes and their consequences.
This document discusses Greece's financial crisis and crisis management. It began with Greece joining the EU and adopting the euro, which led to easy access to debt that was spent on consumption rather than investment. Deficits increased while revenues did not, and the global financial crisis exposed inaccurate deficit reporting by Greece. Primary stakeholders affected included the Greek government, which lost control of monetary policy, and the EU Commission, which oversees the euro. Steps taken so far include bailouts from other EU nations and international organizations, but the crisis response has been complicated and Greece's debt remains high.
Handling Capital Outflows in Developing CountriesAlbino Ajack
The document discusses capital outflows in developing countries and policy options to address them. It explains that capital outflows can lead to currency depreciation and reduced investment, hindering economic growth. While central banks can intervene by selling foreign reserves to limit depreciation, this faces tradeoffs with monetary policy given limited reserves. The paper aims to identify the least negative policy options for developing countries to offset capital outflow pressures.
DARI REVOLUSI MELALUI REFORMASI MENUJU INDONESIA SEHARUSNYA Rian
The document discusses the financial crisis in Indonesia from 1997-1998 and its aftermath. It analyzes the sources and development of the crisis, including monetary, economic, social, and political dimensions. It examines the crisis' impact on unemployment, income, and GDP. The crisis marked a transition from the New Order government to a period of political reform. Solutions discussed include improving human resources, information systems, public services, and implementing good governance through a strategy focused on excellent return on services.
This document discusses the causes of the 1997 Asian financial crisis. It outlines two main arguments about the causes: fundamental weaknesses in Asian economies vs. financial panic and lack of a lender of last resort. It also discusses the roles of the IMF and Malaysia's response. The purpose is to review the key causes, compare the IMF and Malaysian strategies, and identify lessons learned.
A Case Study Analysis on the Asian Financial Crisis of 1997 and Zapa ChemicalsSadman Ahmed
Asian Financial Crisis of 1997:-
The Asian crisis was one of the worst financial disasters in the history of Thailand. The investors moved away large sums money away, inflation spiraled out of control, and it ultimately put pressure on the exchange rates of the Baht. Due to Thailand’s problems alone, the effect of the crisis spread along different countries in Asia. The impacts prove how integrated the economies of today are. Much of the fault lies on the failed policies of the government and weak regulatory regime.
Zapa Chemicals (risk management)
The exchange rate exposure and the legal hurdles can be quite a burden when transferring funds across the borders. In the case of Zapa Chemicals, the tax filing problem did not help them to transfer funds. They didn’t know when exactly the funds would be available for receiving. The risk management of the firm is quite a hefty task for foreign companies to successfully pursue.
This paper attempts to confront various theoretical and empirical approaches to the East Asian currency crisis in 1997, but also with emphasis on two recently dominated literature about East Asian financial crisis. One, strongly supported by Corsetti, et. al (1998) stresses fundamental weaknesses, particularly in the financial sector. The other explains the crisis as the problem of illiquidity and multiple equilibria or 'herd behaviour' [Radelet and Sachs, 1998]. These two controversial articles facilitate the main exchange of ideas about the evolution and causes of the collapse of these economies which were viewed initially as very successful on their way to development and integration with the global economy. An econometric probit analysis was done in order to establish the most important determinants of the currency crisis in East Asia. The results were mixed (the probit modelling turned out to be very sensitive to changes in sample size, introduction of new variables and brought up an important issue of causality, the solution of which, or at least limitation of the problem, requires an inclusion of lagged variables in the model), but at least it showed that this type of exercise without further sensitivity analysis could not support Radelet and Sachs' (1998) panic scenario of the Asian meltdown. If anything, it rather pointed to fundamental problems existing in these economies.
Authored by: Monika Blaszkiewicz
Published in 2000
A close look into the financial crisis and financial market volatilityAlexander Decker
This document discusses the causes and history of the global financial crisis that began in 2007. It provides definitions of financial crisis and reviews related literature on previous crises and the current one. The causes of the 2007 crisis included easy credit conditions, the US subprime mortgage crisis, global imbalances, inadequate exchange rate flexibility, loose monetary policy, complex derivatives, regulatory weaknesses, and Basel I capital requirements. The crisis originated from the US subprime sector in 2007 and spread globally after the 2008 collapse of Lehman Brothers. It compares the current crisis to the Great Depression but finds it has different characteristics and wider impact across economic factors.
Political economy of asian financial crisisguitarefolle
1) The 1997-98 Asian financial crisis was a major shock to the region and economists, as countries like Thailand, Indonesia, South Korea and Malaysia experienced currency crashes and deep recessions.
2) There were debates around the causes, with some arguing it was due to macroeconomic issues like overvalued currencies, while others emphasized speculative attacks and contagion from country to country. A third view cited weaknesses in Asian financial systems and corporate sectors.
3) The crisis raised questions about the political economy factors in the region, including close business-government relations, levels of transparency, and how countries managed the adjustment processes and their consequences.
This document discusses Greece's financial crisis and crisis management. It began with Greece joining the EU and adopting the euro, which led to easy access to debt that was spent on consumption rather than investment. Deficits increased while revenues did not, and the global financial crisis exposed inaccurate deficit reporting by Greece. Primary stakeholders affected included the Greek government, which lost control of monetary policy, and the EU Commission, which oversees the euro. Steps taken so far include bailouts from other EU nations and international organizations, but the crisis response has been complicated and Greece's debt remains high.
Handling Capital Outflows in Developing CountriesAlbino Ajack
The document discusses capital outflows in developing countries and policy options to address them. It explains that capital outflows can lead to currency depreciation and reduced investment, hindering economic growth. While central banks can intervene by selling foreign reserves to limit depreciation, this faces tradeoffs with monetary policy given limited reserves. The paper aims to identify the least negative policy options for developing countries to offset capital outflow pressures.
This document summarizes a presentation about the metamorphosis of Indonesia's financial crisis since 1998. It discusses:
1) The background of the 1997-1998 Asian Financial Crisis, including macroeconomic, financial, and structural lessons.
2) The phenomena of Indonesia's crisis, including how it evolved from a monetary crisis in 1997 to an economic crisis in 1998 and subsequent social and political crises.
3) How the crisis mechanisms affected both micro and macro economy units in Indonesia and led to a total multi-dimensional crisis with moral, mental, and leadership aspects.
Global Financial Crisis and its impact on economic growthKruti Kamdar
What is Financial Crisis?
Definition: A situation in which the supply of money is outpaced by the demand for money.
This means that liquidity is quickly evaporated because available money is withdrawn from banks, forcing banks either to sell other investments to make up for the shortfall or to collapse. A financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution...
The paper presents three generations of theoretical models of currency crises. The models were drawing on the real crises. The first-generation models were developed after balance-of-payment crises in Mexico (1973-82), Argentina (1978-81), and Chile (1983). The second-generation models arose after speculative attacks in Europe and Mexico in 1990s. Finally, first attempts to built the third-generation models started after the Asian crisis in 1997-98. The paper also explains the mechanism of currency crisis, provides an overview of the crises literature, and defines the types of crises. This work is intended to summarize the current level of knowledge on the theoretical aspects of currency crises.
Authored by: Rafal Antczak
Published in 2000
The document discusses the Asian financial crisis of the late 1990s. It describes how several Asian countries like Thailand, Indonesia, and South Korea were affected by currency collapse and economic recession after a period of strong growth and investment fueled by capital inflows. When investors noticed a lack of returns and bubbles in currencies and real estate, there was a massive flight of capital that plunged the region into crisis.
This document discusses economic crises, including their definitions, types, causes, consequences, and examples throughout history. It defines a crisis as an event that can destroy or affect an entire organization. Economic crises refer to periods of negative macro- and microeconomic consequences caused by unplanned events. Types include banking crises, speculative bubbles and crashes, international financial crises, and wider recessions or depressions. Causes range from monetary mismanagement to political instability. Consequences are unemployment, income loss, and economic turbulence. Examples analyzed are the Great Depression, 1994 Turkish crisis, 1997 Asian Financial Crisis, 2001 Turkish crisis, and the 2008 global financial crisis.
The document summarizes the 1997 Asian Financial Crisis that affected economies in Southeast Asia. It provides background on the crisis, describing how currency devaluations in Thailand, Indonesia, and other countries led to a loss of over $100 billion from the region. This resulted in high unemployment, falling wages, and corporate and bank failures. A combination of factors contributed to the crisis, including risky private sector borrowing, currency speculation, and weak economic performance. Countries took measures like seeking IMF aid and reforming banking systems to overcome the crisis. The crisis indirectly impacted countries like India through slower global growth and affected Indian exports, while India was shielded by capital controls and a floating exchange rate.
This document examines the impact of the global financial crisis on Nigeria's crude oil revenue. It uses monthly data from 24 months before the crisis and 24 months during the crisis. The analysis found that the crisis significantly reduced Nigeria's oil revenue, though the impact has begun to lessen over time. The study recommends tighter financial regulation and economic diversification to mitigate the effects of future crises.
11.0001www.iiste.org call for paper.yamden pandok bitrus 1--1-17Alexander Decker
This document examines the impact of the global financial crisis on Nigeria's crude oil revenue. It uses monthly data from 24 months before the crisis and 24 months during the crisis. The study found that the crisis significantly reduced Nigeria's oil revenue, though the impact has begun to lessen over time. The author recommends tighter financial regulation and economic diversification to mitigate future crises. Oil is Nigeria's main export and source of government revenue, so reductions in global oil demand and prices during the crisis negatively affected the country.
This presentation provides an overview of the Asian Financial Crisis of the late 1990s. It discusses the crisis timeline, including Thailand allowing the baht to float in July 1997 which triggered further currency devaluations across Asia. The document outlines weaknesses in Asian economies that were exposed by the crisis, such as weak banking regulation and reliance on short-term capital flows. It also discusses the impact on various countries and regions, including rising interest rates, falling stock prices, and currency depreciation. The presentation concludes with 14 case study questions analyzing different aspects of the crisis.
India was impacted by the global financial crisis through three main channels: the financial channel as overseas financing dried up, the real channel as exports declined with falling demand from the US, Europe and Middle East, and the confidence channel as corporates withdrew investment. The crisis highlighted India's growing integration into the global economy through increased trade, financial flows, and corporate reliance on external financing. India responded with monetary easing and fiscal stimulus packages to contain the crisis initially, then shifted to recovery and inflation management policies as growth rebounded. However, risks remain from high global liquidity, the European debt crisis, and potential for another asset bubble.
This document analyzes economic growth in Egypt from 1961-2003. It finds that growth accelerated after the mid-1980s when Egypt transitioned to a more market-oriented economy. Graphical and econometric analysis show that trends in government consumption, private sector credit, and average OECD growth rates were significant determinants of past growth in Egypt. The document also presents evidence that inefficiency in Egypt's financial intermediation currently poses a major constraint on growth. It uses a diagnostic approach to determine that high shadow prices of financing, rather than low social returns to investment or insufficient private appropriation, best explain Egypt's growth limitations, especially since 1999.
Eurozone Crisis and Financial ContagionAnurag Verma
The document provides information on the Eurozone crisis and its impacts. It discusses the main causes of the Eurozone crisis as profligate government spending and weak economic growth in countries like Greece, Ireland, Portugal and Spain. It then outlines several impacts of the crisis on India, including depreciation of the rupee, lower exports, market volatility, and slowing manufacturing and services sectors. The document also defines financial contagion as the spread of financial crisis across markets, and explains how it can reduce business confidence by prompting investors to rearrange portfolios and calling in loans.
This document discusses monetary policy responses to the global financial crisis, using Egypt as a case study. It finds that the Central Bank of Egypt's ideal policy tools are the overnight interest rate and legal reserve requirements. Interest rates have a longer-term impact on goals like growth, price stability, and job creation. The study also argues for enhancing central bank independence and transparency in nations with high corruption, to help address chronic inflation and socio-political instability.
arifanee.com is world's leading website on the hottest financial news, perspectives and behind the scenes stories. arifanees.com brings you insight and information to inspire and transform your paradigm by enriching your with the best of facts and the vision.
arifanees.com
Information-Inspiration-Transformation
This document introduces the concept of financialization and its implications. It defines financialization as the increasing role of financial motives, markets, actors and institutions in domestic and international economies. Some key points:
1) Since the 1970s/1980s, structural shifts have led to increases in financial transactions, real interest rates, and the profitability and shares of national income going to financial firms and asset holders in countries like the US and France.
2) These trends reflect the phenomenon of financialization in world economies. Financialization has implications for economic stability, growth, income distribution, and political/economic policy.
3) While financialization has detrimental effects, the financial sector benefits from economic crises that hurt many
FDI, economic decline and recovery: lessons from Asian Financial CrisisFarhad Hafez
This document summarizes a paper about the impact of foreign direct investment (FDI) on economic decline and recovery during the 1997 Asian financial crisis. The paper analyzes data from 10 Asian economies to test the hypotheses that higher FDI levels prior to a crisis can reduce economic decline during the crisis and speed up recovery. The results found FDI did help mitigate decline and boost recovery in some cases. The conclusion is that Asian countries' efforts to attract more FDI can help build more stable economic growth and resilience to future crises.
The global financial crisis negatively impacted Cambodia's economy through various channels. GDP growth slowed from an estimated 6% in 2008 to a projected 5.1% in 2009 due to declines in investment, exports, and tourism receipts. A multiplier model was used to estimate that the cumulative impact would increase expenditures by $486 million and output by $518 million, dampening but not eliminating economic growth. Other institutions projected 2009 GDP growth between 4.8-6%, with the exact impact depending on assumptions about how severely the crisis affected Cambodia. Overall, the crisis disrupted Cambodia's economy by slowing growth in key sectors.
To focus on the study of examine “U.S. financial crisis and its impact on Ind...Rahul Dabhi
The document discusses different currencies used globally and factors that influence currency exchange rates such as interest rates and economic opportunities in a country. It defines a financial crisis as a rapid fall in the value of one or more currencies, more likely in emerging markets with high foreign currency borrowing. A financial crisis involves investors withdrawing money from savings accounts, an economic downturn, and stock market crashes. Government responses to speculative attacks on a currency include devaluing the exchange rate, intervening in foreign exchange markets, and raising interest rates. The chapter reviews literature on the impact of the global financial crisis on India's GDP and the relative resilience of the Indian economy.
The document summarizes the East Asian financial crisis that began in 1997. It started in Thailand with the collapse of major companies which destabilized the economy. This triggered a rapid withdrawal of foreign funds across East Asia due to concerns over political and economic stability. The withdrawals accelerated into a financial panic. Countries were affected through currency depreciation, high inflation, rising debt, and economic contraction. The IMF provided $120 billion in bailouts but its austerity programs may have worsened the crisis. India was less impacted due to capital controls and strong fundamentals.
The author is saying goodbye to their colleagues at Sunrise Friends. Over the past two years, the author has discovered new talents and abilities while pushing themselves to new limits. They have learned a lot from listening to each person and being able to participate in others' journeys. The collective willingness to try new things and listen to each other's ideas has allowed the school to grow in amazing ways. The supportive and appreciative environment where people help each other without question has taught the author to be more helpful. The author expresses how much they will miss the laughter and love they have experienced while working there.
This document summarizes a presentation about the metamorphosis of Indonesia's financial crisis since 1998. It discusses:
1) The background of the 1997-1998 Asian Financial Crisis, including macroeconomic, financial, and structural lessons.
2) The phenomena of Indonesia's crisis, including how it evolved from a monetary crisis in 1997 to an economic crisis in 1998 and subsequent social and political crises.
3) How the crisis mechanisms affected both micro and macro economy units in Indonesia and led to a total multi-dimensional crisis with moral, mental, and leadership aspects.
Global Financial Crisis and its impact on economic growthKruti Kamdar
What is Financial Crisis?
Definition: A situation in which the supply of money is outpaced by the demand for money.
This means that liquidity is quickly evaporated because available money is withdrawn from banks, forcing banks either to sell other investments to make up for the shortfall or to collapse. A financial crisis is often associated with a panic or a run on the banks, in which investors sell off assets or withdraw money from savings accounts with the expectation that the value of those assets will drop if they remain at a financial institution...
The paper presents three generations of theoretical models of currency crises. The models were drawing on the real crises. The first-generation models were developed after balance-of-payment crises in Mexico (1973-82), Argentina (1978-81), and Chile (1983). The second-generation models arose after speculative attacks in Europe and Mexico in 1990s. Finally, first attempts to built the third-generation models started after the Asian crisis in 1997-98. The paper also explains the mechanism of currency crisis, provides an overview of the crises literature, and defines the types of crises. This work is intended to summarize the current level of knowledge on the theoretical aspects of currency crises.
Authored by: Rafal Antczak
Published in 2000
The document discusses the Asian financial crisis of the late 1990s. It describes how several Asian countries like Thailand, Indonesia, and South Korea were affected by currency collapse and economic recession after a period of strong growth and investment fueled by capital inflows. When investors noticed a lack of returns and bubbles in currencies and real estate, there was a massive flight of capital that plunged the region into crisis.
This document discusses economic crises, including their definitions, types, causes, consequences, and examples throughout history. It defines a crisis as an event that can destroy or affect an entire organization. Economic crises refer to periods of negative macro- and microeconomic consequences caused by unplanned events. Types include banking crises, speculative bubbles and crashes, international financial crises, and wider recessions or depressions. Causes range from monetary mismanagement to political instability. Consequences are unemployment, income loss, and economic turbulence. Examples analyzed are the Great Depression, 1994 Turkish crisis, 1997 Asian Financial Crisis, 2001 Turkish crisis, and the 2008 global financial crisis.
The document summarizes the 1997 Asian Financial Crisis that affected economies in Southeast Asia. It provides background on the crisis, describing how currency devaluations in Thailand, Indonesia, and other countries led to a loss of over $100 billion from the region. This resulted in high unemployment, falling wages, and corporate and bank failures. A combination of factors contributed to the crisis, including risky private sector borrowing, currency speculation, and weak economic performance. Countries took measures like seeking IMF aid and reforming banking systems to overcome the crisis. The crisis indirectly impacted countries like India through slower global growth and affected Indian exports, while India was shielded by capital controls and a floating exchange rate.
This document examines the impact of the global financial crisis on Nigeria's crude oil revenue. It uses monthly data from 24 months before the crisis and 24 months during the crisis. The analysis found that the crisis significantly reduced Nigeria's oil revenue, though the impact has begun to lessen over time. The study recommends tighter financial regulation and economic diversification to mitigate the effects of future crises.
11.0001www.iiste.org call for paper.yamden pandok bitrus 1--1-17Alexander Decker
This document examines the impact of the global financial crisis on Nigeria's crude oil revenue. It uses monthly data from 24 months before the crisis and 24 months during the crisis. The study found that the crisis significantly reduced Nigeria's oil revenue, though the impact has begun to lessen over time. The author recommends tighter financial regulation and economic diversification to mitigate future crises. Oil is Nigeria's main export and source of government revenue, so reductions in global oil demand and prices during the crisis negatively affected the country.
This presentation provides an overview of the Asian Financial Crisis of the late 1990s. It discusses the crisis timeline, including Thailand allowing the baht to float in July 1997 which triggered further currency devaluations across Asia. The document outlines weaknesses in Asian economies that were exposed by the crisis, such as weak banking regulation and reliance on short-term capital flows. It also discusses the impact on various countries and regions, including rising interest rates, falling stock prices, and currency depreciation. The presentation concludes with 14 case study questions analyzing different aspects of the crisis.
India was impacted by the global financial crisis through three main channels: the financial channel as overseas financing dried up, the real channel as exports declined with falling demand from the US, Europe and Middle East, and the confidence channel as corporates withdrew investment. The crisis highlighted India's growing integration into the global economy through increased trade, financial flows, and corporate reliance on external financing. India responded with monetary easing and fiscal stimulus packages to contain the crisis initially, then shifted to recovery and inflation management policies as growth rebounded. However, risks remain from high global liquidity, the European debt crisis, and potential for another asset bubble.
This document analyzes economic growth in Egypt from 1961-2003. It finds that growth accelerated after the mid-1980s when Egypt transitioned to a more market-oriented economy. Graphical and econometric analysis show that trends in government consumption, private sector credit, and average OECD growth rates were significant determinants of past growth in Egypt. The document also presents evidence that inefficiency in Egypt's financial intermediation currently poses a major constraint on growth. It uses a diagnostic approach to determine that high shadow prices of financing, rather than low social returns to investment or insufficient private appropriation, best explain Egypt's growth limitations, especially since 1999.
Eurozone Crisis and Financial ContagionAnurag Verma
The document provides information on the Eurozone crisis and its impacts. It discusses the main causes of the Eurozone crisis as profligate government spending and weak economic growth in countries like Greece, Ireland, Portugal and Spain. It then outlines several impacts of the crisis on India, including depreciation of the rupee, lower exports, market volatility, and slowing manufacturing and services sectors. The document also defines financial contagion as the spread of financial crisis across markets, and explains how it can reduce business confidence by prompting investors to rearrange portfolios and calling in loans.
This document discusses monetary policy responses to the global financial crisis, using Egypt as a case study. It finds that the Central Bank of Egypt's ideal policy tools are the overnight interest rate and legal reserve requirements. Interest rates have a longer-term impact on goals like growth, price stability, and job creation. The study also argues for enhancing central bank independence and transparency in nations with high corruption, to help address chronic inflation and socio-political instability.
arifanee.com is world's leading website on the hottest financial news, perspectives and behind the scenes stories. arifanees.com brings you insight and information to inspire and transform your paradigm by enriching your with the best of facts and the vision.
arifanees.com
Information-Inspiration-Transformation
This document introduces the concept of financialization and its implications. It defines financialization as the increasing role of financial motives, markets, actors and institutions in domestic and international economies. Some key points:
1) Since the 1970s/1980s, structural shifts have led to increases in financial transactions, real interest rates, and the profitability and shares of national income going to financial firms and asset holders in countries like the US and France.
2) These trends reflect the phenomenon of financialization in world economies. Financialization has implications for economic stability, growth, income distribution, and political/economic policy.
3) While financialization has detrimental effects, the financial sector benefits from economic crises that hurt many
FDI, economic decline and recovery: lessons from Asian Financial CrisisFarhad Hafez
This document summarizes a paper about the impact of foreign direct investment (FDI) on economic decline and recovery during the 1997 Asian financial crisis. The paper analyzes data from 10 Asian economies to test the hypotheses that higher FDI levels prior to a crisis can reduce economic decline during the crisis and speed up recovery. The results found FDI did help mitigate decline and boost recovery in some cases. The conclusion is that Asian countries' efforts to attract more FDI can help build more stable economic growth and resilience to future crises.
The global financial crisis negatively impacted Cambodia's economy through various channels. GDP growth slowed from an estimated 6% in 2008 to a projected 5.1% in 2009 due to declines in investment, exports, and tourism receipts. A multiplier model was used to estimate that the cumulative impact would increase expenditures by $486 million and output by $518 million, dampening but not eliminating economic growth. Other institutions projected 2009 GDP growth between 4.8-6%, with the exact impact depending on assumptions about how severely the crisis affected Cambodia. Overall, the crisis disrupted Cambodia's economy by slowing growth in key sectors.
To focus on the study of examine “U.S. financial crisis and its impact on Ind...Rahul Dabhi
The document discusses different currencies used globally and factors that influence currency exchange rates such as interest rates and economic opportunities in a country. It defines a financial crisis as a rapid fall in the value of one or more currencies, more likely in emerging markets with high foreign currency borrowing. A financial crisis involves investors withdrawing money from savings accounts, an economic downturn, and stock market crashes. Government responses to speculative attacks on a currency include devaluing the exchange rate, intervening in foreign exchange markets, and raising interest rates. The chapter reviews literature on the impact of the global financial crisis on India's GDP and the relative resilience of the Indian economy.
The document summarizes the East Asian financial crisis that began in 1997. It started in Thailand with the collapse of major companies which destabilized the economy. This triggered a rapid withdrawal of foreign funds across East Asia due to concerns over political and economic stability. The withdrawals accelerated into a financial panic. Countries were affected through currency depreciation, high inflation, rising debt, and economic contraction. The IMF provided $120 billion in bailouts but its austerity programs may have worsened the crisis. India was less impacted due to capital controls and strong fundamentals.
The author is saying goodbye to their colleagues at Sunrise Friends. Over the past two years, the author has discovered new talents and abilities while pushing themselves to new limits. They have learned a lot from listening to each person and being able to participate in others' journeys. The collective willingness to try new things and listen to each other's ideas has allowed the school to grow in amazing ways. The supportive and appreciative environment where people help each other without question has taught the author to be more helpful. The author expresses how much they will miss the laughter and love they have experienced while working there.
El documento resume conceptos clave de marketing digital como interacción, engagement, viralidad, fanpage, seguidores, influencer, SOLOMO, inbound marketing y outbound marketing. Explica que el marketing digital se trata de llevar el marketing tradicional a internet a través de herramientas en línea para lograr conversiones, y que el consumidor es el mismo pero tiene diferentes canales para recibir mensajes.
Sam Tyler is a detective who gets hit by a car and wakes up in the 1970s with the same job, though he believes he is actually in a coma. The drama is set in 1970s Manchester, depicted through the period-appropriate settings, costumes, smoking, and old cars. The target audience includes both male and female older viewers who lived through the 1970s and can relate to the time period depicted in the show, though it does not aim to shape views about the past.
Sage et Salesforce ? Faisons-les parler.
ITBRM Consulting propose Sage2Salesforce fruit de 5 ans d'experience.
Le connecteur qui simplifie la vie de l'entreprise. Sage2Salesforce permet un échange naturel des informations entre l'équipe commerciale et l'administration des ventes.
Les uns utilisent Salesforce, les autres Sage. Mais les deux produits ne se parlent pas. Alors comment fait le commercial pour retrouver ce qui a déjà été livré chez son client ? C'est une les réponses apporté par le connecteur Sage2Salesforce.
O documento resume a Revolução de 1930 e a Revolução Constitucionalista de 1932 no Brasil, incluindo seus locais, grupos participantes e resultados. Também define termos como Plano Cohen, Aliança Liberal e Estado Novo. Por fim, compara trechos das Constituições de 1891, 1937 e 1988 sobre o direito a voto.
Scott Rice presented on his co-op experience to company leaders. He summarized the key projects he worked on, which included revising job plans in MAXIMO, leading parts inventory management, and conducting a root cause investigation. He discussed what he learned about parts management, abatement systems, and project management. Rice also outlined how the co-op experience has shaped his future goals of potentially working in operations at Johnson & Johnson nationwide after graduating with a mechanical engineering degree.
Возможно, это не слишком очевидная для всех данность в сервисном бизнесе.
А для кого-то даже спорная.
Но вот каков посыл.
Отношение в сервисе имеет решающую роль.
Быть доброжелательным - такое требование понятно каждому сервисному сотруднику.
Быть вежливым - и это не кажется никому чрезмерным (требованием).
Но нужно быть еще и благодарным.
Благодарным потребителям вашей компании.
Это кажется невероятным.
Благодарным?
За что?
Да, еще совсем недавно сотрудники нашего сервиса гордо бросали фразу, адресованную потребителям:"Вас много, а я - одна!"
Это говорило о том, что благодарными должны были чувствовать себя потребители.
За то, что продавец мог одарить их чем-то дефицитным.
Время изменилось.
И сейчас у каждого потребителя, клиента или гостя есть выбор мест, где покупать товары или услуги.
И все развернулось на 180 градусов.
Теперь уже компания и ее сотрудники должны испытывать чувство благодарности по отношению к своим потребителям.
За то, что у потребителей теперь есть большой выбор, но они выбрали именно вашу компанию, а не какую-то другую, например, ваших конкурентов!
За то, что это именно они платят вам зарплату (сотрудникам зарплату платит именно потребитель, а не начальник!) и за то, что у вас есть работа.
Ведь ваши потребители - это и есть ваш бизнес!
Без них у вас не было бы ничего, кроме мертвых материальных и финансовых активов.
Понимание этого очень важно.
Потому что такое сознание должно создавать определенное отношение к потребителям.
И вы должны демонстрировать свою признательность и благодарность к каждому из них, всякий раз, когда вступаете с ними в контакт.
В конце концов, именно эти люди позволяют вам кормить и содержать ваших детей, так что слова "признательность" и "благодарность" не могут казаться чрезмерными!
Быть может, если перед началом каждого рабочего дня сотрудники станут вспоминать эти бесспорные утверждения, тогда они начнут относиться к своим потребителям по-другому?
И тогда они смогут показать им как они их ценят в отношении (действии!).
И тогда они смогут говорить им слова благодарности и признательности.
И тогда потребители начнут ощущать особое эмоциональное отношение, а это неминуемо позитивно отразиться на уровн
An overview of the key aspects and elements in creating effective ux, content strategy and navigation for content- intensive sites, from publishing to commerce, starting with the basics of CMSes and how most content sites are structured. Taught at a 1-day workshop at General Assembly, 8/17/14.
El documento describe los orígenes e historia de Internet. Se originó en la década de 1960 como una red descentralizada de computadoras interconectadas para compartir recursos. La primera red interconectada se creó en 1969 entre las universidades de UCLA y Stanford. En 1983 se estableció el protocolo TCP/IP y se creó el IAB para estandarizarlo. Internet ha evolucionado desde ARPANET a una red global de más de mil millones de usuarios en 2006.
The document summarizes Martin Wolf's lecture on the failures of global finance and capital flows that have led to emerging market crises. Some key points:
1. Financial liberalization in emerging markets led to excessive risk-taking and poor regulation, fueling credit growth and asset bubbles.
2. Macroeconomic imbalances like fiscal deficits and currency pegs exacerbated risks. Currency crises then triggered financial crises as foreign debt overwhelmed many countries and companies.
3. Major crises included the Latin American debt crisis in the 1980s, the Mexican "Tequila" crisis of 1994-95, the Asian Financial crisis of 1997-98, and the Argentine crisis of 2001-02. The Asian crisis
Pincus, J.; Ramli, R. (1998). Indonesia from showcase to basket case. Cambrid...hamdinur2
This document summarizes an article about Indonesia's economic collapse following the 1997 Asian financial crisis. It describes how:
1) Indonesia went from being one of Asia's greatest economic success stories to experiencing one of the worst economic crises, with GDP expected to contract 10-15% and poverty rising to 40% of the population.
2) While external factors triggered the crisis, underlying weaknesses in Indonesia's financial system and a series of poor policy responses by its government greatly exacerbated the crisis.
3) The roots of the collapse can be traced to Indonesia's attempt in the 1980s to liberalize its economy through financial reforms, despite having a weak state and patronage-dominated political system that prevented effective
Will the US Rebound Cause Another Emerging Markets Crisis?Brien Desilets
1) Past financial crises in emerging markets have often been caused by events in developed markets like the US. As the US economy rebounds, emerging markets may face another crisis if capital flows reverse out of those markets.
2) Many emerging markets remain reliant on foreign financing and currency, leaving them vulnerable to changes in developed markets. However, emerging markets are generally better prepared now than in past crises due to policy and regulatory reforms.
3) Countries like Malaysia demonstrated resilience during the 2008 crisis by requiring large capital buffers and limiting foreign currency lending. Developing local financial systems can help emerging markets insulate themselves from instability abroad.
1) After the Asian financial crisis, Asian economies shifted to more flexible exchange rate regimes to reduce vulnerability to currency crises, while still maintaining some intervention to prevent large fluctuations. This created more room for monetary policy autonomy.
2) Equity market integration has increased within ASEAN and globally, indicating financial shocks can spread rapidly across Asian markets. The risk of contagion may increase if foreign investors treat ASEAN equities as one asset class.
3) Capital controls can help reduce financial contagion risks if used prudentially, such as taxes on short-term inflows. However, unilateral imposition could be harmful, so a regional guideline would help coordinate macroprudential controls.
Roger federer (PDF ) current global financial crisis and its implication on ...Fatfat Shiying
This document discusses a research project on the implications of the global financial crisis in the United States for international financial institutions. The crisis originated from the subprime mortgage crisis in the US in 2007. It affected the activities of international financial institutions like the IMF and World Bank. The research aims to evaluate the performance of these institutions before and after the crisis, and identify factors that caused the crisis and its implications. It provides background on the crisis and reviews literature on its causes and effects.
The document discusses the global financial crisis that began in 2007 and its implications for international financial institutions in Asia. It provides background on the 1997 Asian financial crisis and details on how Asian countries and banking systems recovered in its aftermath. It then examines how the current global crisis impacted international institutions in Asia and the responses by Asian countries. Key points covered include the effects on countries in East Asia, South Asia, Southeast Asia, and the roles of organizations like the IMF, World Bank, and Asian Development Bank in providing assistance.
Chapter 7 The Global Financial CrisisTHE GLOBAL FINANCIAL CRIS.docxbissacr
Chapter 7 The Global Financial Crisis
THE GLOBAL FINANCIAL CRISIS HAD WIDESPREAD EFFECTS. In its early days in September 2008, a trader reacted to the numbers on the floor of the New York Stock Exchange as the Dow plummeted.
Learning Objectives
1. 7.1Evaluate the causes that contributed to creating the financial crisis
2. 7.2Review the impact of the global financial crisis on different world economies, business, employment, and global power shifts
3. 7.3Evaluate the concerns that made different countries respond in different ways to the financial crisis
Financial crises and accompanying economic recessions have occurred throughout history. Periodic crises appear to be part of financial systems of dominant or global powers. The United States was at the epicenter of the financial crisis of 2008–2009. Enjoying a unipolar moment following the collapse of the Soviet Union and the failure of Communism, the United States was confident that economic liberalization and the proliferation of computer and communications technologies would contribute to ever-increasing global economic growth and prosperity. Globalization contributed to the extraordinary accumulation of wealth by a relatively few individuals and created greater inequality. In an effort to reduce inequality in the United States, the government implemented policies that engendered the financial crisis.
As we discussed in Chapter1, is usually the leading force in the growth of globalization. The rise of great powers is inextricably linked to access to investments and their ability to function as leading financial centers, as we saw in Chapter2. Their decline is also closely linked to financial problems. Finance enables entrepreneurs to start various enterprises and to become competitors of established companies. It is also essential to innovation and scientific discoveries. Finance also facilitates risk sharing and provides insurance for risk takers. Countries that have large financial sectors tend to grow faster, their inhabitants are generally richer, and there are more opportunities. Financial globalization contributed to unprecedented growth and prosperity around the world. China and India became significant economic powers, and the industrialized countries grew even richer. Closely integrated into the financial system are banks and investment firms. When the financial system is in crisis, banks reduce lending, companies often face bankruptcy, and unemployment rises. Ultimately, as we saw in the financial crisis of 2008–2009, many banks fail.
The financial crisis triggered a global economic recession that resulted in more than $4.1 trillion in losses, saw unemployment rates that climbed to more than 10 percent in the United States and higher elsewhere, and increased poverty. Stock markets around the world crashed. American investors lost roughly 40 percent of the value of their savings. Housing prices plummeted from their record highs in 2006. Consumers reduced their spending, manufactu.
FINANCE AND LABOR PERSPECTIVES ONRISK, INEQUALITY, AND DEMO.docxericn8
FINANCE AND LABOR: PERSPECTIVES ON
RISK, INEQUALITY, AND DEMOCRACY
Sanford M. Jacobyt
We live in an era of financial development. Since 1980, capital
markets have expanded around the world; capital shuttles the globe
instantaneously. Shareholder concerns drive executive decision
making and compensation, while the fluctuations of stock markets are
a source of public anxiety. So are the financial scandals that have
regularly occurred since 1980: junk bonds in the late 1980s;
accounting and stock options in the early 2000s; and debt
securitization today.
We also live in an era of rising income inequality and
employment risk. The gaps between top and bottom incomes and
between top and middle incomes have widened since 1980. Greater
risk takes various forms, such as wage and employment volatility and
the shift from employers to employees of responsibility for
occupational pensions.
There is an enormous literature on financial development as
there is on inequality and risk. But relatively few studies consider the
intersection of these phenomena. Standard explanations for rising
inequality--skill-biased technological change and trade--explain only
30% of the variation in aggregate inequality. What else matters? We
argue here that an omitted factor is financial development.1 This
study explores the relationship between financial markets and labor
markets along three dimensions: contemporary, historical, and
comparative. For the world's industrialized nations, we find that
financial development waxes and wanes in line with top income
t Howard Noble Professor of Management, Public Policy, & History, UCLA. Thanks to
J.R. DeShazo, Stanley Engerman, Steve Foresti, Dana Frank, Mark Garmaise, Teresa
Ghilarducci, John Logan, James Livingston, Adair Morse, David Montgomery, Paul Osterman,
Grace Palladino, Peter Rappoport, Hugh Rockoff, Dani Rodrik, Emmanuel Saez, Richard
Sylla, Ryan Utsumi, Fred Whittlesey, Robert Zieger, and various interviewees. The usual
disclaimer applies. I am grateful for support from the Price Center at the UCLA Anderson
School and from the Institute for Technology, Enterprise, and Competitiveness at Doshisha
University. This paper is dedicated to Lloyd Ulman: scholar, teacher, mensch.
1. IMF, WORLD ECONOMIC OUTLOOK: GLOBALIZATION AND INEQUALITY 48
(Washington, D.C. 2007).
17
COMP. LABOR LAW & POL'Y JOURNAL
shares. Since 1980, however, there have been national divergences
between financial development--defined here as the economic
prominence of equity and credit markets-and inequality. In the
United States and United Kingdom, there remains a strong positive
correlation but in other parts of Europe and in Japan the relationship
is weaker.
What accounts for swings in financial development and inequality
and the relationship between them? Economic growth is one factor.
Another is the politics of finance. The model presented here is simple
but consistent with the evidence: Upswings in financial development
are related to politi.
Cross country empirical studies of banking crisisAlexander Decker
1) The document analyzes factors associated with banking crises during periods of financial liberalization using a spatial Durbin model with panel data from 49 countries from 1989-1997.
2) The results suggest that financial liberalization increased the likelihood of banking crises, especially in emerging markets. Tighter restrictions on bank activities and entry also increased fragility.
3) Stronger institutions partly mitigated the effects of financial liberalization on crises. The impact of determinants differed between the full sample and emerging economies.
The Global Finance Crisis Case StudyIntroductionThe inside job was a.docxcherry686017
The Global Finance Crisis Case StudyIntroductionThe inside job was a 2010 documentary film by Charles Ferguson that clearly demonstrated the 2008 crisis. On the other hand, it comprehensively narrated and revealed its causes, key players as well as its consequences. It goes ahead to explain the systemic corruption by key financial players in the finance industry and effects of such corruption in United States of America. Furthermore it reveals that changes in financial as well as other policies and banking practices contributed to the growth of the crisis casing most Americans to lose their savings, their jobs and hard earned homes.Answer One: The Unintended Consequences of Financial InnovationIt has been ascertained that changes in the policy framework governing the financial industry and the banking practices heavily contributed to the financial crisis. The development of complex trade policies such as the derivatives market allowed for large increases in risk taking that circumvented older regulations that were intended to control systemic risk. These derivatives increased instability since their adoption is resulted in large losses because of the use of borrowing. Investors suffered the risk of losing large amounts of investments or savings if the price of the underlying moved against them significantly. Secondly the collapse of the house boom in 2004 caused by the application of collateralized debt obligations and the global economic meltdown resulted in unimaginable imbalance of the ratio of money borrowed by investment banks and its own assets. This caused the value of securities related to real estate to crash down and damage financial institutions internationally as the market for collateralized debt obligations collapsed.. It is these financial innovations such as securitization that prioritize short-term over long-term value creation that triggered the 2008 financial crisis.Answer two: The unintended consequences of regulationThe deliberate shift from a system of regulation to deregulation of the financial industry encouraged unusual business practices which had adverse effects. Great pressure was exerted by the financial industry on the government to thwart efforts of regulating the industry. The government and central bank which have the responsibility of upholding financial stability through proper regulation of the financial markets and its institutions were split which led to insufficient responsibility. This exposed the industry to greater and more complicated risks since the supervisory and regulatory structure failed to keep up with the evolution of the financial markets. Answer three: Explain how the financial crisis of 2008 occurred—who is to blame?The global financial crisis began in the early 2000s and finally climaxed in 2008 and since then its devastating impact still lingers, worldwide. It began when; the financial sector which had consolidated into a few giant firms introduced the use of high risk derivatives. It i ...
ECO 202 – Written Assignment Scoring Rubric Complete th.docxtidwellveronique
This document provides a rubric for scoring written assignments in an ECO 202 course. It rates assignments across five criteria on a scale from Not Attempted to Exemplary. The criteria include Length Requirements (20%), Mechanics of Writing (30%), Understanding & Application (50%). For each criterion, the rubric describes the standards for Not Attempted, Novice, Basic, Proficient, and Exemplary performance and assigns a corresponding point range.
The Role of Banks in the Propagation of External Shocks to African Economiespaperpublications3
Abstract: The paper examines the role played by banks in the propagation of external shocks to African economies. We employ a general equilibrium model of a small open economy to analyse how the banking sector propagates external shocks. The study uses a vector autoregression (VAR) analysis to assess the impact of exchange rate and foreign interest rate shocks on bank lending spreads and output fluctuations in African economies. We use quarterly time-series data for 5 selected African countries for the period 1990-2011. The findings show that foreign interest rate and exchange rate shocks significantly affect output fluctuations in Africa. The results, however, indicate that banks play limited role in the propagation of shocks to African economies.
Similar to Does asian financial crisis serves as a precursor for global financial crisis (16)
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
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Does asian financial crisis serves as a precursor for global financial crisis
1. Research Journal of Finance and Accounting www.iiste.org
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online)
Vol.4, No.6, 2013
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Does Asian Financial Crisis Serves as a Precursor for Global
Financial Crisis?
Yahaya Danjuma Aliyu Aminu Baba Sanusi Abdulkadir Fateh
Abubakar Tatari Ali Polytechnic Bauchi, Nigeria.
Yahayabacas@Yahoo.Com Limankobi@Yahoo.Com Sans2599@Yahoo.Com
ABSTRACT
This study is motivated with the recent happenings in the global economy. A financial crisis hit Asia in 1997-
1998 which led to the down fall of some Asian countries financially. With the fall of socialist Soviet government
which led to recommendation of new world economic order in a conference in Washington D.C called
Washington Consensus. Moreover, among the Washington consensus recommendations and the financial
liberalization which there will be no government intervention in the working of invisible hands? In 2008 another
financial crisis occurred signifying that lesson where not learnt from the previous financial crisis. However,
evidence from this study reveals the similarities in the causes and emergence of two financial crises. Therefore,
the study upheld that lessons from Asian financial crisis where not learnt and adequate measures were not taken
into cognizance. In this view the paper concludes that there is an urgent need to take precautions against
occurrence of another financial crisis. The study offers recommendations to prevent possibilities of another
financial crisis and also suggests ways to prevent future financial crisis.
1.0 INTRODUCTION
The Asian financial crisis in 1997- 1998 led to fall of Asian financial market with devastating effect on
Indonesia, Malaysia, Philippines and Thailand. The crisis started with the depreciation of Thailand currency.
Loss of confidence in the financial institutions exacerbates the situation. It also manifests contagion effect to
other healthier Asian Countries. Economics argues that financial panic creates the crisis. However, Warr (2003)
Question the contagion effect as emphasized by the critics that, why is that some neighbours of Thailand are not
affected like Korea. He claims the vulnerability is more likely to cause the crisis than contagion effect. Hale
(2011) associated the course of the crisis to financial asymmetric of information in financial market; investing in
non-productive investment with high foreign currency risk exposures. Chowder and Goyal (2000) understand
that countries that have financial crisis experience two dropping in the value their currencies and trade equities.
Mishkin (1999) outline unequal dissemination of financial information and imbalances in balance sheet of
almost all financial institutions that cause the financial crisis. He stresses that, the financial liberalization result
in massive inflow of investment that allow relaxation of restriction that leads to excessive risk and financial
problems.
The International monetary fund as a banker of last resort fail to understand the causes of the financial crisis,
neither goes to under predict the deterioration in output from the beginning nor do they underestimate the
efficient rescue package for such countries (Woo, 2000). This is supported by research of Stiglitz (2001) and
Krugman (1998). Woo (2000) emphasises that alternative multilateral institution should be formed to remedy the
inefficiency of IMF in order to check their monopoly power. King (2001) suggests that banks trigger Asian
Financial Crisis due to their unscrupulous attitudes that create financial panic which leads to devaluation of
Thailand currency (Thai). Hale (2011) outline that the currency mismatch and financing of domestic investment
in foreign short term credit resulted in balance sheet mismatch to huge debt. The East Asian bank proceeds to
finance riskier project with credit they accessed from foreign banks. Their government guarantee motivates them
to act without efficient regulation and guard lines. During that time Asian financial market was in the stage of
embryonic. Therefore the exposures and miracle deceive them to trust the foreign credit with high risk. The
Asian economies need to understand the paradigm of global financial market and the volatility in the financial
market (Yu, 2001).
2.0 LITERATURE REVIEW
Washington consensus was formed in 1990 by William John to transform the countries after the falloff Soviet
Union. The recommendation of William become an enthusiasm is seen as the Ten Commandments. Rodrick
(2006) explain that the consensus worked as not intended or expected. Therefore it regarded as not successful.
He lamented trust is lost in Washington consensus. Lee and Mathew (2009) recognised that there are
achievements in industrial development Japan, China, and Taiwan that result in increased in standard of living.
Although, the success recorded by Asian tigers is due to openness, deregulation with a mixed conservative
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macroeconomics regulations, the drive for technology and manipulating of the markets. The assertion by
Rodrick (2006) was supported by lee and Mathew (2009) which express that Washington consensus is a
complete total failure. The Asian Tiger’s devices their way with different assumption to achieve their success.
Their success emerges not from Washington Consensus recommendation but from different approach to market
economics. Malaysia government formulates their austerity programmes without contacting IMF for assistance
and deal with their crisis excellently (Singh, 1999). Arestis (2004) joint the fight that Washington Consensus was
catastrophe and not promising. Developing countries suffers serious disaster, financial famine when they embark
on the consensus recommendation especially financial liberalization. Gore (2010) and Stiglitz (1998) expressed
that the negative effect of Washington consensus needs to be changed with a new friendly paradigm with more
human approach.
The promotion of financial liberalization by Washington consensus is based on non-factual economic neither
prove nor evidence .Finally, Washington consensus is fragile that create massive problems in Argentina, Latin
America and Asian tigers (Stiglitz, 1998 in Williamson, 2000). Aristis, (2005) the consensus recommends
redirection of investment and credits to specific countries. Williamson (2000) highlighted that Washington
consensus is dead and a total failure. It creates contagion crisis due to it advocacy of capital account
liberalization that engulf Asian countries into tragedy. The consensus preaches for property rights that benefits
the rich at the expense of poor. Therefore Washington consensus advocates less government role and
intervention to reduce poverty and bring developments. It emphasized on the fourth rule of the consensus Aristis
(2005).
2.1 FINANCIAL LIBERALIZATION
Financial liberalization is not a new phenomenon it affects economic growth in various ways. Lee and Shin
(2008) believes that it reduces barriers to financial market, enhanced the possibilities of borrowing that comes
along with crisis and banking disaster. They conclude that it brings increase in interest rate and increase in gross
domestic products GDP. Arestis (2005) sees financial liberalization as a flow of credit without intervention of
government that allow the invisible hands to determine the allocation to individual and markets. He proceeded to
show that equilibrium would be achieved through eliminating low return investment and would improve the
market to advanced level.
The recommendation of multi literal corporation of market financial liberalization, removal of subsidies, tariffs
is classified as a total failure .Lack of knowledge of the remedies of the financial crisis (Aristers, 2005) and Yu
(2001).UNCTDA (2011) recommends that financial markets did not guaranteed welfare unless with government
intervention because financial liberalization is shattered by naive and failed the test of time. Asymmetric of
information exist in the financial market. Although, government cannot know the market equilibrium prices due
to the behaviour of hedgers and speculators or the participants of the market.
2.2 CAUSES OF ASIAN FINANCIAL CRISIS
Much have been written and debated about the crisis. Chowdary and Goyal (2000) sees currency crisis and lax
government regulation which gives speculators opportunity to determine the effectiveness of currency. The
exposure of the currency is too expensive to maintain by the government in fixed exchange rates. Secondly, IMF
and government guarantee of bailing out banks that indicates nonchalant attitude of banks in assets management
that leads to the loss of confidence and it bubbles. Thirdly, the loss of confidence is due to financing long term
investment with short term credit.
Yu (2001) highlighted the following as causes of the crisis; firstly massive inflow of investment from developed
countries to Asian countries in 1995-1996 and massive withdrawal of investments with the aim of creating
problem of short working capital that create panic. Secondly, the inflow of the investment creates a temporal
growth in Asian financial markets and higher stock value in relation to stocks in developed economics. The
investment was all sold by the investors that crash the prices into crisis. Thirdly, the impact of contagion that
affects some Asian countries. Fourthly, nepotism of the government officials with owners of corporation. The
crisis is due to weak supervision, low regulatory framework by the government and pegging currency in
American dollars.
From graph (1) shows the depreciation of Thailand (Thai) in relation to dollar within the start of Asian financial
crisis. The exchange rate volatility of the currency from the commencement of the crisis is 29.8 per Dollar within
thirty days, the dollar appreciate to 30.7. The currency depreciates to 31.2 in November due to the countries
maintaining peg interest rate. The devaluation of Thai increases the depreciation of currency.
GRAPH ONE THAILAND CURRENCY (THAI)
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Source,Oanda, 2011
Graph two 2 explain that the indonosia Rupiah is highly affected due to the vulnerability of the country. In
sepember 2007 Dollar in relation to is Rupiahis 8,481.76 it depreciates to 8,644.48 to 8,807 in few days. The
currency exposure is greater in relation to indonosia domestic currency. On september rupiah appreciate and
then depreciate to 8.969. by November it reaches it peak due to contagion effect and wide spread financial panic.
GRAPH TWO INDONESIAN RUPIAH (SEPTEMBER 1997 TO NOVEMBER I997)
Source,Oanda, 2011
The graph 3 showe In September the exchange rate of japanise yen to united states dollar is 76. Within ninety
days Yen depreciated to 78 per $1 US Dollar. The spread of contagion affect the japanise Yen.
GRAPH THREE JAPANESE YEN (SEPTEMBER 1997 TO NOVEMBER 1997)
Source, Oanda, 2011
The bankruptcy of many firm escalate the financial crisis .The advocates of the panic stricken approach sees that
the government have close working relationship with the private sectors .The government has been excessively
hasty of liberalization of the financial system, which leads to greater bubbles. The speculators have the chance of
the vulnerability of Asian economics to attack the currency (Noble and Ravenill, 2000). It could be understood
that speculation plays a greater role in triggering the financial crisis. Fisher (2002) sees contagion effect created
by Thailand that manifest to large external debt deficits, Stock market bubbles Secondly, the ego of some
government to maintain pegged exchange rate for long time, thirdly, the collapsed of bank portfolio due to lower
government regulations. Fourthly, the “carry trade notion” which comes from the lower interest rate Asian
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countries like Korea. Lastly, is high expectation of return on investment from foreign investors. Also,
contributing to the crisis is the volatility of the Yen/ Dollar exchange rate for over three years. King (2001)
outlines that crony capitalism, moral hazard, problem of balance sheet in most private institutions and investor
panic. He made his point that “hot money” was flowing to East Asia.
2.3 EFFECT OF ASIAN FINANCIAL CRISIS
So many literatures on the crisis have been written. Gore (2010) indicates that during the financial crisis it has
exacerbated the contagion effect and compound the problem. Therefore, the financial crisis brings sharp
economic contradictions that rapidly transformed to affect employment, gross domestic product and high social
consequences. The effect of the crisis translates into currency depreciations that lead to higher increase in price
and fall in demand of labour. It increase unemployment, loss of saving, panic in investment and immerse bank
failures or bankruptcy. Nevertheless, there is high fall in government tax income.
The resources that would be utilized for development and provision of infrastructures are sacrifice for debt
servicing. Radelet and Sach (1999) among the causes are moral hazard and absolute corruption.
3.0 METHODOLOGY
This research is purely a library work utilizing secondary data. The study uses South and East Asian countries
because the financial crises affect them much and were regarded as Asian tigers with United States of America.
The United States as the highest recipient of foreign direct investment (FDI) it is also included in the study. The
study uses secondary data available for the research.
4.0 DISCUSSIONS
WHAT WAS THE LESSONS LEARNT FROM THE ASIAN FINANCIAL CRISIS?
There are some similarities in the causes of Asian financial crisis and the recent global financial crisis that
indicates that the lessons were not? Hale (2011) demonstrated that the crisis was never being expected but the
early warnings signifies a geometric progression of the Asian economies without adequate government
regulations. The excessive current accounts deficits, short term credit with high currency exposures financing
long term investments in Asian countries. Also, government guaranteed to stimulate the banks to engage in
higher risk investments. Moore and Baker (2008) analysed the global financial crisis as the multiplier negative
effect of financial market; the banking sector lack Re-regulation in investment; presence of violation of Up-tick
rule, welfare crisis of housing and nonchalant attitude of the creditors in financing long term assets with short
term borrowings. Therefore, the Asian financial crisis and global financial crisis has similarities in terms of lax
government regulation in equity financing and government guarantee of bailing out institutions e.g. AIG in US
and Government guarantees in Asia. There is non-disclosure in balance sheets of developed countries that treated
as non-report items due to their higher figures.
Hale (2011) argues that the Asian financial crisis and the global financial crisis are different despite some
similarities. He consequently, outlines the diversity of developed economics with the emerging economics. He
made his argument that there are greater restrictions and measures in the developed countries financial market.
Secondly, the emerging economics are replicating and copying from developed countries financial system,
regulation and banking guidelines.
Rotheli (2010) acknowledges that the tax payer is at detriment in bailing out banks in global financial crisis
therefore, government should stop the baling out because banker. Rotheli (2010) says there is significant loans
that are not reported in the balance sheet of US firms especially vehicles loan which have higher number. The
Asian financial crisis is related to the fault of some Asian government. While, the global financial crisis
originated from market actors. The IMF recommends the needs for more transparency and adequacy of reporting.
Linsmeier (2010) studies shows that prior to the Asian financial crisis and Global financial crisis the IMF fails
to recognised the losses in the balance sheets of firms in those countries it gradually exacerbated to financial
crisis in developed and the emerging economies which shows that the lesson is not learnt.
4.1 EARLY WARNING OF GLOBAL FINANCIAL CRISIS AND CAUSES
Moore and Baker (2008) indicated that there is no any early warning but alarms. They emphasized that global
financial crisis was unheeded due to sophistication of the financial markets. Rotheli (2010) says the global
financial crisis started with the subprime financial market which lends credits to with low credit ratings. Moore
and Barker (2008) outline that non-compliance with accounting standard (SAS 59) and the valuation of asset by
banks. The Auditors were not concerned with the transparency in their report; however they concentrate on
going concern of those firms. The collapse of Lehman brothers increases the volatility of the market. In 1999 the
panic raises high. The loss of confidence creates a greater Eurozone panic. Financial panic is among the leading
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indicators of global financial crisis. The house bubbles in 2002 result in loss of confidence in the banks and the
deficiencies in Basel II (see GRAPH 4)
GRAPH FOUR INDICATORS OF GLOBAL FINANCIAL CRISIS
SOURCE, Scottgrannis .blogspot.com 2011
The financial crisis was caused by many factors that signify it’s self in the financial markets. According to
UNCTDA (2011) reports the global economic crisis has explained the systematic failure of the markets
and the failure to reform the global financial architecture. Cochrane (2010) outlines the following as the causes
of September 2008 financial crisis: loss of confidence (panic) in the financial institutions e.g. Lehmann brothers
and Enron, WEBCOM refer to Graph five.
GRAPH FIVE GLOBAL FINANCIAL PANIC
SOURCE, Scottgrannis .blogspot.com 2011
It also shows the measure of market volatility in relation to VIX calculation. Within 2008 and 2009 the market
was up-shot in relation bankruptcy of Lehmann brother’s bailout of AIG. His study shows that “the market has
wiped out about $750 billion dollars. S&P 500 forwards Price Earnings ratio of 11.7, in ten years treasury yield
2%”.he emphasized that the situation is critical that can put many euro banks out of business. It also has a
contagion effect due to the global financial crisis Italy has a debt over $2 billion dollars and the Greece has to
changed president.
The Russian long term capital management drastically falls in 1999. It was initially been bailed out in 1998. It is
also, among the causes of Global financial crisis. WORLD-COM in 2003 collapsed due failure of hedge funds
and corruption. The Enron bankruptcy increased the panic. September 11 attack was among the shock that raised
alarm for financial panic. Currently, more countries like Portugal, Italy, and Greece are yarning for bailout in
response to down turn investment and huge debts. Rotheli (2010) Indicates that Lehmann induces serious panic
that exaggerates the crisis. secondly, the house finance bubbles also the subprime losses grew up to $400 billion,
mortgage are designed in a high fragile structures that result the mortgage to lost it value which creates bubbles.
Thirdly, the guarantee of government to bail out firms and the categorization of some firms as SYSTEMATIC
FIRMS that are too big to fail. The removal of Glass- Steagal prohibition and the emergence of NFA that trust
the working of the invisible hands without distortion from government. The NFA that heavily trust the market
that create lax government regulation, low supervision and hedging of private equities that resulted to serious
financial crisis in developed and developing countries. Thirdly, NFA triggers the crisis due to inefficient system,
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need for more government bail out that did not improved growth and developments (Cutty, 2008). Therefore the
global financial crisis is due to quest for more markets domination and speculations.
Graph six depicted that global financial crisis creates loss confidence in the financial institutions. In America big
corporations fails like Lehmann Brothers, American International Group and others. The emergence of
Troubled Asset Relief Programme that bailout corporation and take over some companies. The euro zone crisis
escalates with panic and non-performing loan. The bailout increased the creditors panic. Xafa (2010) it could be
understood that the bankruptcy of Lehman brothers contributed and bailing out of AIG insurance company. The
house boom and bust is the leading factor that causes the financial turmoil in United States and other countries.
GRAPH SIX CREDIT SPREAD IN THE MARKET
SOURCE, Scottgrannis .blogspot.com 2011
The graph 7 shows that in 1999 the exchange rate of dollar to euro is 1.15 even slide to 1.00 in the late 2002.
Towards middle 2003 to 2005 it becomes stronger due to United States House bubbles in 2008. In 2006- 2007
the dollar shrink 1.45 .It also reaches the peak of 1.60 in 2008-2009. In 2009 euro to dollar drop to 1.40.Finally,
in 2010-2011 greater volatility because of arguments of existence of euro and euro countries a massively looking
for bailouts.
GRAPH SEVEN EURO STRONGER THAN THE DOLLAR
SOURCE, Scottgrannis.blogspot.com 2011
Many countries in Asia suffer bitterly due to financial liberalization. Singh (1999) out lines those negativities
are: Thailand experience budget cut up to 100 billion Thai in 1998.secondly, Increased in value added tax from 7%
to 10%.thirdly, Reduction in current asset deficit to 5%. Two (2) million people lost their jobs. Some women
have no choice than to engage in prostitution in order to pay school fees of their children. In Indonesia, there is
increase in prices from 250% to 500%; the real asset business bust-up; employment raise to 11%; massive layoff
of workers from textile industries. Indonesian companies have $55 billion outstanding debt in foreign currency
with 59% in short term categories. Philippian peso depreciated by 35% against Dollar in 1997. Banks has $10
billion debt in US dollars. Importation cost increased that makes repayment of $45 billion debt hard. All these
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problems are due to IMF recommendation for financial liberalization that brings financial crisis that warrant
stringent conditions.
.5.0 CONCLUSION
The Asian financial crisis did not serve as a lesson to developed countries; consequently, some sees it as
different from the recent financial crisis. Financial liberalization is among the recommendation of Washington
consensus it is at the detriment of emerging countries .It also increase the financial crisis. IMF gives
recommendation that favours the investing countries and their contributors, instead of solving balance of
payment problem of the countries. The study finds that financial panic increases the crisis. Finally, countries like
Malaysia formulate their economic policies that are suitable to convert financial crisis without contacting IMF
and they succeed. United State government promote the financial crisis by bailing out financial institutions.
5.1 RECOMMENDATION
There is the need for more proper accurate measurement and adequacy of financial disclosure in financial
statement and balance sheet. The need for more democratic response to financial crisis would reduce the
negativity of the market. IMF/ World Bank should enhance their role to more humanly approach by eradicating
moral hazard. Multilateral institutions would recommend positive austerity measures to countries in need of their
assistance.
Moreover, countries should avoid corruption and non-transparent acquisition of wealth. Every country that is in
crisis should formulate it austerity measures indigenously by itself. Washington consensus should be regulated
and improved to serve humanity not a selected few. Information asymmetric system should be eliminated due to
in equality to the market it brings. A well-functioning financial system is required and more efficient regulatory
system before it open up for more liberalization. Moreover, financial market liberalization should be should open
with regulations. The government guarantee of bail out should be stopped because the resources generated for
economic and development is sacrifice for bailing out unscrupulous banks and bankers. Finally, strengthening
the financial institutions is the ingredient of more improved accountability and transparency and effective
banking regulation. There should be frequent review of international financial architecture. The banks and
corporations with financial crisis should be allowed to fail or taking over by the government. Government should
intervene to ensure equal distribution of resources. Conclusively, by a popular saying of Stiglitz that IMF has
resources to bailout bank not to bailout retrenched workers and reduced poverty.
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