SophiaPretty

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About SophiaPretty

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Accounting,Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Economics,Engineering,English,Environmental science,Essay writing Hide all
Teaching Since: Jul 2017
Last Sign in: 304 Weeks Ago, 2 Days Ago
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  • MBA,PHD, Juris Doctor
    Strayer,Devery,Harvard University
    Mar-1995 - Mar-2002

Experience

  • Manager Planning
    WalMart
    Mar-2001 - Feb-2009

Category > Economics Posted 06 Sep 2017 My Price 8.00

Can you please see attached and try answering questions that are not done?

Week 13
April 11th
Read Mishkin’s article about global financial instability.
http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.3
1. What is a financial crisis? Occurs when there is a particularly large disruption to information
flows in financial markets, with the result that financial frictions increase sharply and financial
markets stop functioning.
2. How did adverse selection and moral hazard contribute to the financial crisis in Mexico and East
Asia in the 1990s? What are adverse selection and moral hazard? The financial system struggled
with problems of asymmetric information, in which one party to a financial contract has much
less accurate information than the other party. This resulted in two basic problems in the financial
system: adverse selection and moral hazard. Adverse selection occurs before the financial
transaction takes place, when potential bad credit risks are the ones who most actively seek out a
loan. Moral hazard occurs after the transaction takes place. It occurs because a borrower has
incentives to invest in projects with high risk in which the borrower does well if the project
succeeds, but the lender bears most of the loss if the project fails.
3. Did irresponsible monetary and fiscal policy contribute to the crisis in the 90s? Why or why not?
4. How is it possible for the IMF to help in a crisis when a domestic central bank might not be able
to help.
5. What should the US learn (or have learned??) from the crisis in the 90s?
Read Rogoff’s article about global financial instability.
http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.21
http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.13.4.21 Answer the questions and place the answers in
the appropriate drop box in WTClass.
1. According to Rogoff, is the status quo in international lending viable or not? Explain.
2. Can the IMF handle international financial crises? Why or why not?
3. Rogoff gives six solutions to save the global financial system (deep pockets lender of last resort,
an international financial crisis manager, an international bankruptcy court, an international
regulator, international deposit insurance corporation, and a world monetary authority.) What is
wrong with all of these?
4. Can developing economies cope with speculative capital flows without help? Explain.
5. What will be (should be) the role that equity financing play in developing country projects?

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SophiaPretty
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Status NEW Posted 06 Sep 2017 08:09 AM My Price 8.00

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