The current global crisis began in 2007 and spread in 2008. It had varying impacts on the financial systems of various countries depending on the initial stability of the system and its exposure to the credit derivatives that accelerated the crisis. …
Download file to see previous pages...
The current global crisis began in 2007 and spread in 2008. It had varying impacts on the financial systems of various countries depending on the initial stability of the system and its exposure to the credit derivatives that accelerated the crisis. The effects were severe in the developed countries like US as compared to the developing nations like India. In this regard, different countries reacted to the crisis identifying the opportunities and the associated challenges. The countries in the OECD advocated for a joint effort to have international standardization of regulatory policies. The main concerns are stimulation of demand in a given economy, improving liquidity, preventing foreclosures of mortgages and improving access to financing by for the SMEs and giant investors. There is a focus in risk reduction through investment in insurance. Financial crisis refers to a wide category of situations in which the large financial institutions or assets lose large proportion of their value. The current global crisis began in 2007, in some countries, and deepened in 2008 (OECD, 2009). Some of the factors that may contribute to financial crisis include application of similar operational strategies by players in the market, changes in the banking business, excessive leverage, changes in regulations and corporate governance, and failure of government policies on the financial sector (Blundell-Wignall, Atkinson, and Lee, 2008). Government policies regulate the financial sector within in a country and the operations with a global business partner. The failures in some of these policies could have contributed greatly to the current situation. To fix the situation and mitigate for future crises, various governments have enacted some monetary and fiscal policies. The current global financial crisis had other related problems like food crisis especially to the developing countries as was, and continues to be, witnessed in the horn of Africa (Canuto, 2011). The financial reforms to manage the crisis must then focus on the other financial instruments controlling the economy of the country. The problem that has been encountered in the management if the crisis is that economists and the policymakers do not have a proper understanding of the relationship of various components of economic policy and regulation (Tamirisa, 2011). It is important to understand the interaction between monetary and macro-prudential policies in enabling financial stability. Designing a successful macro-prudential policy requires the government to understand the risks of the new financial instruments it is putting in place (Tamirisa, 2011). Focusing on the monetary policy is insufficient in the management and mitigation of financial crises. This paper focuses on the regulatory responses that have been given by five different countries in relation to the current global
...Download file to see next pagesRead More
Cite this document
(“Regulatory Responses to the Current Financial Crisis (US, UK, China, Research Paper”, n.d.)
Retrieved from https://studentshare.org/business/1395306-discuss-five-countries-regulatory-response-to-the
(Regulatory Responses to the Current Financial Crisis (US, UK, China, Research Paper)
“Regulatory Responses to the Current Financial Crisis (US, UK, China, Research Paper”, n.d. https://studentshare.org/business/1395306-discuss-five-countries-regulatory-response-to-the.
This essay discusses that development of Canada’s economy is dependent on the increase in technology-intensive exports. Generation of new and improved products has demonstrated the indigenous technological capability. Accumulation of technological expertise has been fostered by inter-firm overtime transfer of knowledge.
…………..13 VII Conclusion…………………………………………………………………………………..15 VIII References………………………………………………………………………………….16 Abstract Consumer protection has laws which are used to govern the consumers and also the traders.
Assumptions concerning the safety of the Chinese economy have been proven false in the tsunami of the financial crisis. China was expected to be exempted from the destructive recession in the West. It was also believed to be immune from the economic fall because of its insulated banking sector and ‘closed’ secure capital account.
There are above 500 million residents in the EU who comprises of 7.3% of the population of the world (Osterreichische Akademie der Wissenschaften, “European Union reaches 500 Million through Combination of Accessions, Migration and Natural Growth”). As of 2010, the gross domestic product (GDP) of the EU was 16,242.25 billion USD, which represents around 20% of the global GDP in terms of purchasing power parity (PPP) (International Monetary Fund, “Report for Selected Country Groups and Subjects”).
The impacts of the global financial crisis were so immense that the global economy was not able to maintain its traditional growth and development. This decrease was largely contributed by numerous factors. In the United States of America, the real estate property was over-invested and the issue of sub-prime loans also emerged.
The rapid growth of population in India is a root cause of a wide range of issues that India is facing today. These issues include but are not limited to decline in the standard of living, unemployment, poverty, shortage of resources, conflict, and untold misery.
China’s economy is highly developed than that one of India. While India is the 11th biggest economy in terms of the various exchange rates (Chow, 2001). China takes the number two position passing Japan (Runckel, 2002). In comparison of the estimated $1.3123 trillion Gross Domestic Product of India, China posses an average GDP of close to $4909.28 billion (Chow, 2001).
Economy affects all aspects of people’s life, which affirms the importance of monitoring the global economic performance. Countries have established numerous financial crisis regulations that aim at checking emergence of crisis in the future. Particularly, the OECD countries are presently practicing various regulatory measures to safeguard the world’s economy.
This paper argues that due to ill-advised economic policies, businesses suffered, the housing market failed, and financial institutions were in disarray after the stock market plunged to new lows.
A number of issues were pointed out to be causes of the
2 Pages(500 words)Research Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Research Paper on topic Regulatory Responses to the Current Financial Crisis (US, UK, China, Canada, India) for FREE!