Question

Discuss how the Great Recession of 2007 - 2009 highlighted the vulnerabilities of the global financial...

Discuss how the Great Recession of 2007 - 2009 highlighted the vulnerabilities of the global financial system. Why were some countries seriously affected by the stock market crash (U.S., Europe), while others rode it out almost unscathed (China, India)?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Great Recession of 2007-09 showed the again failure of the free market economy system when it is properly regulated by the governments. The great recession severely affected the US and Europe where free market system existed whereas China and India survived due to the government regulated economy.

The example in India and China the financial institution regulated by under the compliance of the government or central bank where all the decision related to economic activities take by the government.

For example in the Banking sector in Inda dominated by Government banks and their decisions related to banking activities directly monitored by RBI.Hence these banks were able to survive from the adverse effects of the great recession.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
“In 2008-2009, the world economy retrenched in the wake of a global financial crisis. (The Great...
“In 2008-2009, the world economy retrenched in the wake of a global financial crisis. (The Great Recession) Did the globalization of capital markets contribute to this crisis? If so, what can be done to stop global financial contagion in the future?... NO Easy answers…check out what the G20 is up to. NOTE: This crisis happened 12 years, so the best answers will not only discuss what the G20 did at the time but research what it has been doing since...
Between about December 2007 and June 2009, the United States was considered to be in a...
Between about December 2007 and June 2009, the United States was considered to be in a recession. The U.S. Gross Domestic Product fell approximately 3% from the third quarter of 2008 to the third quarter of 2009. Also, during December 2007 and June 2009, the Standard and Poor’s 500 index dropped by 38% and the unemployment rate climbed from 5% to 9.5%. The macroeconomic situation affected almost all companies since higher unemployment affected personal consumption, which dropped from 10,140.3 Billion...
PLEASE ANSWER ALLLLLLLL. Thank you 1. In the aftermath of the Great Recession Select one: a....
PLEASE ANSWER ALLLLLLLL. Thank you 1. In the aftermath of the Great Recession Select one: a. the deflation of the early 2000s has been reversed. b. policymakers in the U.S., Japan, and Europe are working hard to avoid deflation. c. deflation concerns have subsided in the U.S, Japan, and Europe. d. the U.S., Japan, and Europe are all experiencing deflation. 2. Which of the following statements about exchange rates is correct? Select one: a. When a country experiences a trade...
During 2007-2009, the global economy experienced a severe recession. To deal with recessionary gaps in their...
During 2007-2009, the global economy experienced a severe recession. To deal with recessionary gaps in their economies, many countries implemented expansionary fiscal policies to increase aggregate expenditures. Consider the following hypothetical responses (the actual policies were different in each country). In 2009, the government of the United States introduced a $675 billion stimulus package - additional government expenditures with no changes to the tax system. In Canada, the tax rate was reduced from 33 percent of GDP to 30 percent...
1.) During the financial crisis of 2007-2009, A. yields on all types of securities fell. B....
1.) During the financial crisis of 2007-2009, A. yields on all types of securities fell. B. yields on all types of securities rose. C. yields on Treasury securities fell while yields on corporate securities rose. D. yields on Treasury rose while yields on corporate securities fell. 2.) SELECT ALL the true statements about the Federal Funds rate (FFR). A. The FFR is a market determined interest rate. B. The FFR is explicitly set be the Federal Reserve. C. The FFR...
Financial regulations are rules created and imposed by the government on financial institutions, such as banks....
Financial regulations are rules created and imposed by the government on financial institutions, such as banks. The objective of financial regulations is to prevent the abuse of financial services to customers, to protect the savings of the public, and to keep the financial economy stabilized (Rose, Hudgins 2008 p. 31). It is accurate to state that the impact of past financial crises has established and contributed to the amelioration of financial regulation over the decades. In 1929 when the Great...
Topic: Why is unemployment so high in Europe? Briefly discuss. Optional reading: You can use any...
Topic: Why is unemployment so high in Europe? Briefly discuss. Optional reading: You can use any Web browser to search for the words “European unemployment.” Just by scanning the headlines, see how many possible explanations you can list. Why Is Unemployment So High in Europe? Between World War II and the mid-1970s, unemployment in Western Europe was low. From 1960 to 1974, for example, the unemployment rate in France never got as high as 4 percent. The worldwide recession of...
Chapter 11: 1.Even before the economic crisis of 2007 to 2009, employees in the United States...
Chapter 11: 1.Even before the economic crisis of 2007 to 2009, employees in the United States were working about _____ more hours per year than their European counterparts. a. 70 b. 249 c. 350 d. 1,970 2. In 2005, about 20% of home loans were _____, meaning they were loans sold to low-income people who had little chance of paying their mortgages, often under predatory terms that were especially unfavorable to the unsuspecting borrowers. a. subprime triple-A rated c. fixed-rate...
China Moves to Tighten the Money Supply By DAVID BARBOZA – January 6, 2007 China’s central...
China Moves to Tighten the Money Supply By DAVID BARBOZA – January 6, 2007 China’s central bank said late Friday that it had raised the reserve requirement ratio for banks, the fourth increase in six months, to further tighten the nation’s money supply. The modest move, which takes effect this month, increases the reserve ratio by half a percentage point, to 9.5 percent. Analysts said it was the government’s latest warning that too much money in the financial system could...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT