Question: Critically evaluate the principal determinants of the current global financial crisis.
1st Grade
Answer: There are many proposed determinants for the cause of the financial crisis, however, the initial challenge lies within locating the ‘principal’ determinants that lead to such a catastrophe.
Particularly in economics every cause has a subsequent effect, which can be argued to have a knock on effect to the next cause and effect. For example in the case of the financial crisis of 2007-present (hereby referred to as just the financial crisis), there is a logical theory that links China’s government policies to the cause of the financial crisis (Lecture Slides, Lecture 1). By buying up US Treasury bonds to stop other currencies appreciating against the Dollar, the interest rates in the US were effectively being kept low (one of the main determinants of the ‘housing bubble’), however is it therefore fair to assume that China’s government is the principal determinant for the fin...(short extract)
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- Subject: Economics
- Course: Business
- Level: Degree
- Year: 2nd/3rd
- Mark: 75%
- Words: 2279
- Date submitted: October 15, 2013
- Date written: February, 2012
- References: Yes
- Document type: Essay*
- Essay ID: 5099
