Question Preview

Question 1The Global Financial Crisis (GFC) is the most significant worldwide economic catastrophe since the Great Depression of 1929. The sub-prime mortgage crisis is an example of the financial crisis that affected global financial markets worldwide. Give some other examples of financial crisis events in your discussion below. Question 2Discuss the possible causes of the financial crisis. Do you think GFC could be repeated again? Discuss. Question 3Explain the scale and impact of GFC in economies of different countries including your own country. Identify some of the actual or proposed reforms which have eventuated.Important notes regarding Assignment:? The due date for Assignment is Wednesday 8pm. (Week 10)? The hard copy of Assignment should be handed in to your tutor during your tutor

Answer Preview

Question 1

            OPEC oil prices which primarily included Arab nations decided to hit back against the United States. This was in response to the supplies of arms to Israel during the Fourth Arab Israeli War. There was a declaration of oil embargo which abruptly halted oil exports in the United States and allies. There was oil shortages and halting of exports of oil to the US and allies of US. US faced a shortage of oil and spike in prices of oil which lead to an economic crisis in the US and other developed countries.  

            Asian financial crisis of 1997 is one of the popular crises faced by several economies of Asia such as Malaysia, Thailand, Korea, Indonesia, and Indonesia. There were rapid devaluation and capital outflows which turned the investor confidence from over exuberance to contagious pessimism (McNally, 2017). There was an apparent structural imbalance in the economy. The crisis existed from 1997-1999. Foreign investors sought to reduce their stake in Asian economies which caused destabilizing of the capital outflows and led to loss of confidence and rapid devaluation.

Get solution