Causes of the Global Financial Crisis

Causes of the Global Financial Crisis 1. What were the main causes of the global financial crisis? What steps could the UK government take to reduce the dangers of another crisis? Discuss using course material AND your own research. Introduction: Through Globalization different country get the opportunity for international trade, increase the capacity of capital flows and spread the uses of technology by enhancing the global economic condition (IMF: 1997). Over the last 30 years especially in the mid 80s and mid 90s cross border transaction increased ten times faster than before and foreign direct investment increased three times faster than before (Economist: 1997). The globalization has involved national economies which are incorporated through trade and foreign investment. It has also created the difference between manufacturing and services by using different technology and processing (Kobrin: 1999). Gereffi says, â€Å"Due to this globalization the global economy has changed during the last ten years and so. Many development countries also moved up in the international system.† The origination of global financial crisis After the second quarter of 2008 the US financial market collapsed and the global financial crisis started. As US is the leader for all international financial systems the crisis has extended to the other countries rapidly. The decreasing rate of cash flows, decrease in asset prices and increasing rate of uncertainty in financial systems affected the whole global economy and starts the financial crisis globally. After the great Depression in 50s this is the largest economic breakdown as described the International Monetary Fund in 2009 (Frenkel Rapetti: 2009). The View of the Current Global Crisis: This global economy is struck by the recent economic crisis and mainly worsens the financial condition since September 2008. In Latin America the economic condition condensed in the second quarter in 2008. The causes of the financial crisis were foreign remittances of Latin America have reduced in 2% and the rate of international trade also reduced to 2-3% in this economic downturn. Most of the countries which economy is driven by the foreign trade are hampered due to this economic downturn. The decreasing rate of export commodity prices including the export industry commodity prices also lead to the financial crisis in recent years and results in lower GDP rate. However the economic shock results in export revenue plunged. Also the instable exchange rate and increased yield price disintegrate the stock market (Ocampo: 2009). Morgan (2009) found out few susceptibility of the global financial crisis. Those are debt and leverage, intra-financial multiplication, inequality in global tra de. This economic downturn showed up mainly after the fall down of Lehman Brothers in 2008. New US Treasury Secretary Timothy Geithner pointed out some factors in G7 conference, â€Å"in order to improve the financial condition all countries should maintain a pledge to open trade and investment policies.† He also pointed out some factors to be improved in order to get the economic growth. The factors are: Praise for recent economic moves by China; Help for banks; and The need for a speedy end to the Doha talks on world trade The Steps Could be Taken by the UK Government to Recover this Global Financial Crisis Improving the modern time global economic crisis has become the greatest challenge for every government. To recover the global economic crisis UK government should plan the necessary steps: must re-establish the confidence, growth, and jobs; The finance institutions need to be renovate to provide loan in order to restructure the faith financial regulation need to be toughen. International financial institutions need to be altered and funded in order to recover this crisis and take precautions for future crisis. build an complete, emerald, and sustainable recovery. The global economy can be out of recession and can be out of future crisis with above assurance by performing globally. Re-establish the confidence, growth, and jobs In order to re-establish jobs UK government should take a unique and intensive financial growth by creating jobs to the hard working families by the end of this year amount to $5 trillion raise output by 4 per cent, and accelerate the transition to a green economy UK government should use the full range of monetary policy, using exceptional instruments, consistent with price stability and central bank should maintain the development policies for longer time. In order to reinstate the growth of the economy UK government must reinstate the national lending and international capital flows. To overcome these situations UK government need to supply liquidity to the banking system and benefits the financial institutions. UK government needs to carry out well functioning international monitoring system in order to avoid competitive devaluation of UK currency by creating structured economic policies. Finance institutions need to be renovate to provide loan The global economic crises are mainly driven through the failure of financial sector and financial regulations of every country. To recover the situation UK government should take positive steps by constructing a reliable, supervisory and dogmatic framework for the future financial sector. This framework would support the global growth and fulfill the demand of the business and local citizens. UK government must ensure that to maintain the global financial system the national regulatory systems need to strong enough to provide reliability and cooperation between countries. The regulatory systems will be stronger if regulators and supervisors protect consumers and investors and reduce the financial economic cycle rather than increase it. UK government should implement a plan to Strengthening the Financial System. The plan includes: new financial stability board (FSB) need to be formed. This FSB would provide future predictions of financial risks and also necessary steps with the help of IMF. macro-prudential risks need to be taken to organize the regulatory systems after the recovery reliability of capital in the banking system need to be confirmed through quality, quantity. To carry out this implementation plant the finance minister should take the necessary step. Financial regulation need to be toughened Due to the recession all the markets around the world are facing challenges. As the international market is depending on each other with the cross border transaction and relating to this matter the UK government should strengthen the international financial institutions to recover this situation. So this government needs to increase its resources through the global financial institutions. Resources should be used effectively to support the financial progress. The longer term consequences of the financial institutions need to be toughened to overcome this crisis. A fair and sustainable recovery need to make sure UK government should not focus to re-establish the growth of the global economy but they also should focus on the criterion which has hampered the economy of the underdeveloped country. The Government should also ensure that the damage to the global economy should be minimized. UK Government should provide more resources to recover their financial condition and should create a social protection for the underdeveloped countries. As a part of the G20 UK government can do some contributions to those underdeveloped countries. They should create employment opportunities for those who are affected by this financial crisis. For both the men and women the labor market needs to be formed. Fulfill the commitment However this is most important for everyone to work together and set up a plan to fulfill the commitment to recover the financial crisis and make sure this crisis will not continue further after the second quarter of this year. Conclusion; After all the analysis it is clear that global financial crisis has created major impact on the global economy. Many developed, developing and underdeveloped countries are badly affected by this crisis. Since US market directly motivating the other countries market so it is clear that the crisis started form there and spread out to the global economy. Some countries faced reduction in remittances due to this financial crisis. Many countries stock price has decreased due to the exploitation of currency exchange rate. To overcome this situation all the government should implement dependable macroeconomic policies and impose regulation on national financial systems. In developing countries the crisis is getting deteriorated in terms of balance of payments and the economic sense of balance. References 1. Shiller, Robert J. The subprime solution: how todays global financial crisis happened. Princeton. NJ: Princeton University Press, 2008. 2. Summer, Lawrence H.† International Financial Crises: Causes, Prevention, and Cures†. The American Review, May, 2000, pp. 1-16. 3. Blankburg, Palma. â€Å"The Global Financial Crisis†. Cambridge Journal of Economics, July 1, 2009, pp. 531-538. 4. Crotty, James. â€Å"Structural causes of the global financial crisis: a critical assessment of the new financial architecture†. Cambridge Journal of Economics, April 23, 2009, pp. 563-580. 5. Morgan, Jamie. â€Å"The limits of central bank policy: economic crisis and the challenge of effective solutions.† Cambridge Journal of Economics, March 31, 2009, pp. 581-608. 6. Frankel, Roberto. â€Å"A developing country view of the current global crisis: what should not be forgotten and what should be done.† Cambridge Journal of Economics, March 25, 2009, pp. 685-702. 7. Ocampo, Josie. A. â€Å"Latin America and the global financial crisis.† Cambridge Journal of Economics, March 13, 2009, pp. 703-724. 8. [Global Financial Crisis], via JSTORE, accessed[February/2009]. 9. â€Å"G7 pledges to avoid protectionism†, BBC News, 14 February, 2009. http://news.bbc.co.uk/1/hi/7889222.stm. accessed February 2010. 10. Sing, Anup. â€Å"Global Financial Crisis†, Global Issues, 25 July, 2009. http://www.globalissues.org/article/768/global-financial-crisis. accessed in February 2010.

Failure and Young People

1. 4 – Explain when and why inquiries and serious case reviews are required and how the sharing of the findings informs practice. Serious cases of child abuse are when the child is physically injured repeatedly or neglected, which then results in their untimely death. An inquiry into the case is carried out to find out how the child or young person died and how the system failed to protect and prevent this. Serious cases are also recorded and reviewed to give agencies examples of failures to which they can improve on. As stated by Tassoni et al (2010) pg 113, ‘Society has a duty to protect children and young people’ and should be able to do this by having effective communication between all the organisations involved in the protection of children and young people. These organisations such as local authorities, police, education welfare, hospitals etc, are supported by legislation, policies and procedures to help them in their duty of protecting children. Organisations fail in the protection of children when they do not follow the legislation and guidelines set out for them. In the inquiry of Victoria Climbie’s case, the failure to follow proper procedure to protect her led to high-profile media attention because the people involved did not do their duty to keep her safe from the abuse she received from her guardians. The lack of communication between her social workers, doctors, nurses and the police was the reason why her guardians were allowed to continue abusing her till she died. When a serious case is reviewed, agencies such as the local safeguarding authorities or the NSPCC aim to find out what failings the case had and how to make recommendations on how to improve legislation and guidelines, and also how to prevent future serious cases of child abuse. Communication and co-operation between all the agencies involved in the protection of children and young people is important because this helps to ensure their welfare and to promote their well-being.

The Color Line Mass Media And Systemic Racism - 1258 Words

The problem of the 21st Century is the problem of the color line: Mass Media and Systemic Racism In the Souls Of Black Folk , Du Bois starts his collection by stating that â€Å"the problem of the Twentieth Century is the problem of the color line.† (p. 34 Forethought Du. Bois) Du Bois’s conception of the â€Å"problem of the color line† is an apt diagnosis for the problems about racialized identities of his time and is still applicable for the Twenty-first century. Du Bois’s â€Å"problem of the color line† can be seen operating in the dominant media coverage of recent events of excessive police brutality directed toward African Americans. â€Å"The problem of the color line† is still evident in the 21st century with institutionalized racism and discrimination which continue to oppress people of color. In this paper first I will outline Du Bois definition of the problem of the color line, and argue that it is an apt diagnosis for the problem of the 21st century. In particular, I will argue that the media’s presentation of issues surrounding racial injustices contributes to the promotion and perpetuation of this systemic racism. Specifically, I will maintain that this media coverage negatively affects blacks such that we suffer from double-consciousness and it impedes us from gaining a â€Å"true self-consciousness†. I will also propose that the media coverage of racial injustices perpetuates the problem of the color line by creating a distorted image of the African American. I will also evaluateShow MoreRelatedTelevision Shows Of All Time Is Glee846 Words   |  4 Pagescharacters of color. For the majority of the show’s six season run, they are not given any major storylines or any storylines that surround the topic of race. This can still be seen as under-r epresentation of racial diversity, but the show continues to be seen as forward thinking and first of its kind. 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Free Market Economy Essay - 461 Words

A free market is a type of market that the government is not involved in. Since the government does not care about what happens, the free market is also called â€Å"hands-off† or â€Å"let it be economics†. The government is limited to protect the citizens from the danger and that is the major goal for the government. In the free market economy, there are three components of the free market economy: competition, active but limited government, and the self-interest. Competition is one of the main components of the free market economy. Competition means that the companies compete with one another to make more benefits to themselves. According to the concept of the free market economy, the competition means a good thing because it is a basic†¦show more content†¦The government does not necessarily need to intervene how the marker goes. Therefore, the competition is a significant factor of the free marker economy.Active but limited government is another main part of the free market economy. This means that the government undertakes a significant, active role in the market, but at the same time the government’s role is ver limited because all the investments and decisions in the economy are controlled by the market than by the government. An invisible hand will control the market. Limited government is a type of government in which there is a minimum intervention in personal properties. Overall, the government tries to keep the economy in a law and let it free by limiting itself. Hence, the limited government is an essential factor of the free market economy.Last, self-interest is a significant part of the free market economy. Self-interest refers to one’s desire to buy something. The market will be generally controlled by people’s interest; the companies will compete with one another to fit the best taste. This is because the people’s interest will be the main trend in the market and it will control what should be made in the market. 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