This research assesses the fundamental causes of the current financial crisis that hit the USA in 2008. A Close look at financial analysis specifies that theoretical modeling based on unrealistic anticipations led to serious problems in mispricing in the enormous unregulated market for credit default swaps that exploded upon catalytic rises in residential mortgage defaults. Latest academic research suggests solutions to the economic crisis that are appraised to be far less costly than bailing out
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(corresponding autor) (jose.perles@ua.es) Ana Belén Ramón-Rodríguez* (anar@ua.es) Antonio Rubia-Serrano** (antonio.rubia@ua.es) Luis Moreno-Izquierdo* (luis.moreno@ua.es) *Department of Applied Economic Analysis, University of Alicante ** Department of Financial Economics and Accounting, University of Alicante Faculty of Economics and Business Sciences University of Alicante Campus San Vicente del Raspeig 03080 Alicante Tel: 96 590 36 09 Fax: 96 590 93 22 Corresponding author details: José Francisco Perles-Ribes
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Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission. Comments and enquiries should be addressed to: European Commission Directorate-General for Economic and Financial Affairs Publications B-1049 Brussels
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Perspective on the Financial Crisis of 2007–2009 By Viral V. Acharya, Thomas Cooley, Matthew Richardson and Ingo Walter Contents 1 Introduction 2 How Did We Get There? 2.1 2.2 2.3 The Panic of 1907 and Its Aftermath Bank Competition, Financial Innovation and Risk-Taking in the Last Decades of the 20th Century Risk-Taking Incentives of Financial Institutions 249 253 253 258 264 3 The New Banking Model of Manufacturing Tail Risk 4 Alternative Explanations of the Financial Crisis 5 Conclusion A
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R e se a rc h a n d Stat i s t i c s B r a n c h working paper 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION RESEARCH AND STATISTICS BRANCH WORKING PAPER 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries Peter Wad Copenhagen Business School UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010
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THE RECENT CRISIS AND RECOVERY OF THE ARGENTINE ECONOMY: SOME ELEMENTS AND BACKGROUND Arturo O’Connell Universidad de Buenos Aires and Università di Bologna a Buenos AiresT 1 Argentine-Australia Economic Conference Buenos Aires, April 2007 Draft version; not to be quoted without permission from the author Introduction The Argentine crisis could be examined as one more crisis of the developing countries – admittedly a star pupil that had received praise from many sides – hit by the vagaries of
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Global Financial Crisis: The 2007–2012 global financial crisis, also known as the Global Financial Crisis (GFC), late-2000s financial crisis or the second "Great Recession", is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.[1] It resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in
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In 2007, the US financial system began to collapse. The trust link between the different financial institutions, such as Investment Banks or Insurance Companies, broke – crashing all the financial system. The collapse of all the US banking system had consequences everywhere in the world. No one, from the strongest European countries to the poorest places in the world, was spared. To understand the whole current situation, we have to look back in the 80s and 90s when the deregulation started. Deregulation
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of investment spending reduces during the next couple of years, is going to be a major challenge which will require a focus by the public and private sectors on productivity’. Discuss this statement, including an analysis of Australia’s GDP growth rate since 2000 and the drivers of GDP growth in Australia. What are the implications of your outlook on monetary policy settings? Name: 1,500 Student No.: Word Count: MGSM845:ECONOMIC CONTEXT OF MANAGEMENT
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What triggered the Financial Crisis Although a number of developments helped trigger the recent financial crisis, the most devastating were the significant losses on mortgage loans to subprime borrowers. The impact of these losses only became known shortly after house prices began to decline. In order to prevent a deep recession after the September 2011 terrorist attacks, the Federal Reserve drastically reduced interest rates. These low rates allowed citizens to continue taking out loans, including
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