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.
Nobody downloaded yet

Explained in details - Essay Example

Comments (0)
Implementation of Market Regulations to prevent Financial Crisis Introduction Financial markets are imperfect markets (Heremans, 1999). “A disruption to financial markets in which adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities” is defined as a financial crisis (Mishkin, 1992)…
Download full paper
Explained in details
Read TextPreview

Extract of sample
Explained in details

Download file to see previous pages... Moreover, researchers have pointed out sever limitations in the policy instruments which are used to regulate the financial markets. The current paper attempts to answer “why and how the world financial markets must be regulated to minimize the adverse effects of crisis to the world economy.” The specific objectives of the current study are (1) to assess the need for regulating the financial markets and (2) to propose an effective framework for managing the financial systems. For this purpose four selected research publications which are focused on “financial market regulations” are thoroughly reviewed in terms of the rational, mechanisms, limitations and risks presented in each study. Next in relation to the essence of the above studies, the management framework of the EU zone banking and financial crisis, 2008 is evaluated. Beginning of the Financial and Banking systems failure National Bank Act and state banking laws which were imposed after 1933 restricted the activities of commercial banks to specific geographic locations and heavily used Federal deposit insurance and Federal Reserve funding to protect the banking system against risk and uncertainty. The above financial markets were largely stable and fairly profitable however, there was limited space for evolving the system. Towards the late 1960s depositors and investors found the above financial system inefficient in providing their dynamic and complex needs. Development of a “shadow banking system” which integrates the traditional lending activities and capital markets activities began during the early 1970s. Shadow baking system heavily adopted “securitization and derivative instruments” in place of real money. Traditional linkage between the depositors and commercial banks in lending activities largely deteriorated in shadow banking system. Recent financial crisis is viewed as an after math of exploding the above system (Tarullo, 2012). Organization of the Report Part 1 of this paper describes the characteristics of the financial markets, need for regulating and regulatory mechanisms used by the governments. This section of the paper is largely based on “Regulation of Banking and Financial Markets” by Dirk Heremans (1999) and “Regulatory Reform since the Financial Crisis” by Daniel Tarullo (2012). In the part 2, limitations and risks of regulating the world financial markets are described by using the “A crisis of Politics, Not Economics: Complexity, Ignorance, and Policy Failure” study by Jeffrey Friedman (2009) and “The Bailout through a Public Choice Lens: Government-Controlled Corporations as a Mechanism for Rent Transfer” study by J.W. Verret (2010). Part 3 contains implications of the above arguments in relation to the real world scenarios. Finally, the conclusions drawn from the literature review and examining the real world case scenarios are outlined in “Conclusions.” Part 1 Characteristics of Financial Markets and the Need for Regulating According to Dirk Heremans, 1999, financial markets are imperfect and contain “unique” characteristics (i.e. risk & uncertainty, information asymmetry, heard behavior and influence on money circulation) which demand systematic government intervening (pp 953). Risk and uncertainty in the financial mar ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Hawthorne and Irving essay
From the book, we can know about the European influence during that period of the history of American English literature. Also, we are able to know that how the authors maintained their distinct styles and approaches despite the fact that American English literature had yet not ripened enough by that time.
3 Pages(750 words)Essay
The role of Finance and Accounting in Business
The total selling price is given by the expression Y*$5= $ 5y…………………………….. (3). Therefore, $ 5y = $3y + $ 200. Factoring out $ we get; 5y = 3y + 200……………………… (4). Bringing like terms together; 5y-3y = 200 This implies; 2y = 200 and, therefore, y= 100 Substituting for y in equation 3 above, we get $ 500.
3 Pages(750 words)Essay
American Past
By relying on the existing primary and secondary sources on the historical background of the United States of America, it is evident that, the modern social, political, economic, and environmental development is to a greater extent shaped by the countries past occurrences.
3 Pages(750 words)Essay
Explained in details
Many characters such as Tom and Gatsby do not seem to care if the outside world found about or disagreed with their indiscretion, thus the most significant conflict had less to do with social expectations but within the self. The plot revolves around the life of the stories protagonist, Jay Gatsby through the eyes of his neighbor and friend Nick Carraway; whose perspective the writer uses to render the story to the reader.
7 Pages(1750 words)Essay
See details
It is used in communicating the invisible. The genres of program music extensively capture this function. At the time of Renaissance variety of music paid attention to the harmony between voices and musical instruments. This gradually changed as audiences become more attracted to sounds that contrasted one another.
3 Pages(750 words)Essay
Details are below
Guide to Taking a Patients’ History” authored by Craig S Lloyd provides various strategies that can be utilized by a nurse while communicating with the patients to know the patient history. This article was published in the journal named Nursing Standard on August 24, 2007.
8 Pages(2000 words)Essay
If I have seen further, it is by standing on the shoulders of giants
This essay will explain what Fibonaccis main idea is and how he came to identify this idea. Therefore, it will first examine how Leonardo acquired ideas from his predecessors and how
3 Pages(750 words)Essay
Work family interview
She had two children; a seven year boy and a 12 year old girl who attend academies. She said that she leaves for work at seven o’clock in the morning
2 Pages(500 words)Essay
Peer review
If it were not so, he would not have given such a precise and accurate definition. The other strength is that the answers provided are correct and relevant (Gorringe, 2009). Besides, they are
1 Pages(250 words)Essay
The Labor Theory of Value: Maury Camarena
The author states that Maury Camarena’s explanation on the Labor Theory of Value is comprehensive since she has shown how the politicians influence the process of economic production. However, she did not explain how capitalism relates the different economic concepts such as wealth, commodities, and labor.
1 Pages(250 words)Essay
Let us find you another Essay on topic Explained in details for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us