Nobody downloaded yet

Financial Crisis Impacts on Progress of Employees - Essay Example

Comments (0) Cite this document
  Financial crisis impacts on progress of employees Name Tutor Institution Chapter Two: Literature Review Introduction Financial crisis can be traced back from Brettons Woods era in (1945- 1971), the famous gold standard era in 1880-1993, the great depression mystery in 1930 which economist up to today have not arrived at a consensus on the factors that the led to the crisis, Asian financial crisis in the late 1990’s, Mexico financial crisis in the mid 1990’s, and lastly the latest global financial crisis in 2008…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
Financial Crisis Impacts on Progress of Employees
Read TextPreview

Extract of sample "Financial Crisis Impacts on Progress of Employees"

Download file to see previous pages There have been a lot of studies conducted by various scholars since the great depression in 1930’s up to today. Literature obtained from this series of academic studies conducted by the various scholars is still relevant up to today in offering explanations on how and what were the main contributors of the various crisis. This literature has been relied upon by many academicians as well as policy makers in order to make sure that such events do occur again. Theoretical Literature There are two theories, which seem, to be more developed and various scholars have borrowed much from them. These theories are the Minsky’s crisis theory and Marxist crisis theory. Minsky’s crisis theory is named after the Hyman Minky a renowned economic professor who developed this theory. Hyman initial objective was to elucidate the domestic economy crisis. This has since changed as this theory is adopted by various expert and scholars in delineating global financial crisis. The underlying concept in his theory was the fragility observed in the financial system. He elucidates the behavior of both the financial sector and non-financial sector to engage in liabilities with a high level of risk as businesses enlarge was the major contributor to the crisis. From an international front, he argues that the interdependency of economies fundamentally leads to instability of the global financial system. He attributes the instability experienced in the global financial system to lending activities that lend debt accumulation (Davies 2010). The main theme of theories was the concern expanding economy and the emergence of “a speculative investment bubble”. Hyman argued that as the economy expanded, that is, as the economy experienced tremendous growth, thus resulting to low level of unemployment as the level of investment in the economy increases. Optimism increases and trade between debt and risk changes. As a result of the increases in optimism, there is an increase in the level of asset prices as well as increase, in speculation. The increase in asset prices in return allowed ponzi borrowers to thrive in an economy (Davies 2010). This also leads changes the attitudes that investors have toward risk thus resulting in, changes in liability portfolio. As a result of changes in risk and liability structure, the financial structure becomes fragile thus resulting into a financial crisis (Davies 2010). In doing this Hyman linked, the fragility experienced in a normal economy to the speculative investment bubble which emerges in the financial market. Minky argued that, when the corporate sector and the economy as a whole are experiencing growth, that is when the cash inflows exceeds the amount need to phase off debts there is a tendency to develop speculation (Davies 2010). When the grows up to appoint where the present assets cannot support the economy when borrowers cannot repay their loans since the cash-inflows are not enough to finance consumption and to honor debts, this degenerate into a financial crisis. When this occurs, the lenders adopt stringent credit issuance policy; such that even companies with the capability of obtaining loans are not spared; thus, this leads to the contraction of the economy. The movement of a ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Financial Crisis Impacts on Progress of Employees Essay”, n.d.)
Retrieved from
(Financial Crisis Impacts on Progress of Employees Essay)
“Financial Crisis Impacts on Progress of Employees Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial Crisis Impacts on Progress of Employees

Financial Upheavals. Financial crisis

...Financial Upheavals Financial crises are inevitable and seem to be a usual and reasonablyinvariant characteristic of such business cycle. The economic system of any country is subject to discrete business cycles that lie on the boom-depression continuum. The aftermaths of any such business cycle may vary from being modest to remorseless hinging upon its magnitude and continuance. History show that the American economy has moved through periods of boom, recession and recovery. The years 1837, 1893 and 1929 help retrace the occurrence of three major depressions in United States (Calomiris 2010). The downturns of 1857, 1873, and 1907 are also referred in the history books (Rothbard 2002). The America of...
10 Pages(2500 words)Essay

Financial Crisis

...? ECN353 Contents Contents 2 Creation of asset bubbles and large capital flows 4 Financial Crisis 7 Policies to address the effects of global financial crisis 10 Long term growth Prospects 11 Conclusion 12 References 14 Introduction The global financial crisis started to show its impacts from the middle of the year 2007. Economists consider the global financial crisis to be the worst scenario after the Great Depression of 1930s (Chari, Christiano and Kehoe, 2008, p. 1). Initially it was thought the crisis to be one of solidity and would affect only a small number of...
15 Pages(3750 words)Essay

The Impacts of Financial Crisis on the Progress of Employees

...? Financial crisis impacts on progress of employees Background information The term financial crisis was not popular until theglobal financial crisis of 2007, that led to the collapse of major economies with United States being the worst affected. These have caused many institutions and individual to associate the late 2000’s financial crisis to the financial misfortunes they are currently facing. At this point we need to obtain a clear understanding of this phenomena, financial crisis can simply be used...
7 Pages(1750 words)Research Proposal

Financial crisis

..., then there would be panic selling that further brings the prices of stocks down. There would be a run on the banks with a large number of people attempting to withdraw cash. Assets would lose their valuation. Depending on the severity of the crisis, the market would recover in a few days or the ill effects would persist for a few years. A financial crisis is followed by recession and a general slowdown of the market. Financial crisis can even happen to individuals and businesses and such entities cannot pay their bills, they cannot pay their employees and their business would be repossessed. Recession is said to follow...
8 Pages(2000 words)Term Paper

Financial crisis

...Financial Crisis The current financial crisis will be solved one day, but the situation following that may be most probably even worse. The current crisis is only a beginning. The reasons for the current crisis may not be due to the policies alone. Even though the American banking crisis is dangerous, the condition of global economy is more dangerous than the banking crisis. Many economists believe that the current recession may continue longer than anticipated. The financial institutions need to be blamed themselves for the current crisis. The crazy lending habits of...
4 Pages(1000 words)Research Paper

Financial crisis impacts on progress of employees

...Financial crisis impacts on progress of employees Financial crisis impacts on progress of employees Introduction The world has experienced a number of financial crisis and to name a few; the recent American financial crisis also popularly known as global financial crisis, which happened in the year 2008. Second the United Kingdom financial crisis, third the Mexican financial in the mid 1990’s and the Asian...
2 Pages(500 words)Essay

Financial Crisis

...Financial Crisis An argumentative paper [Type the [Pick the Introduction Towards the end of the first decade of the year 2000’s, the United States economy suffered a financial meltdown, which was reported to be the worst of its kind since the Great Depression of 1930’s (Foster & Magdoff, 2009). The financial meltdown led to people losing their jobs and their homes. 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. Discussion A number of issues were pointed out to be causes of the financial...
2 Pages(500 words)Research Paper

Financial Crisis

...Summary The paper addressed several issues related to the financial crisis, and reached several conclusions, which will be underlined in the following paragraphs. One major conclusion is that the financial crisis would not have happened if the regulators and other institutions responsible for supervising the financial system, would have taken the appropriate measures to keep the system sound and well functioning. Signs of their inability to fulfill this task were the easiness in getting a bank credit, lack of regulation, too low interest rates, and toxic mortgages. Moreover, some of the major financial institutions, considered “too big to...
1 Pages(250 words)Essay

Financial crisis

...Teacher Shadow banking in China Shadow banking in China is a financial system whereby non-bank financial intermediaries provide traditional financial services and banking functions to traditional commercial banks. In simpler terms, it meant that intermediaries called trust companies which are not allowed traditional banking functions such as receiving deposits and loan out money, can manage the money from commercial banks. The common transaction involving shadow banking are WMP or wealth management products which are really just savings deposits with higher annual return of a guaranteed 3%. Compared to the traditional savings deposit, this 3% is way higher which explains why a lot of...
2 Pages(500 words)Essay

Financial Crisis Impacts on the Employees' Motivational Aspects

...What are the impacts of the Financial Crisis on the motivational aspects of employees? Abstract The current study aimed to assess if the financial crisis led to the lowering of employee motivation and if there were any approaches that managers can adopt that would lead to employee motivation during the crisis. The research involved ten interviews from employees of Royal Scotland Bank and Barclay’s Bank in the United Kingdom. Based on the responses of these employees, who belonged to different levels in the two organizations, the research concluded...
33 Pages(8250 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Financial Crisis Impacts on Progress of Employees for FREE!

Contact Us