Saturday, February 22, 2020

Economic Crisis Research Paper Example | Topics and Well Written Essays - 2000 words

Economic Crisis - Research Paper Example Eventually, critical evaluation of the policies is exercised in order to execute cross evaluation procedure and suggestion of optimal policies are being stipulated in order to strengthen the policy implication paradigm. The propulsion of the economic crisis in 2008-2009 is the devastating economic crisis that the world faced in the past six decades. The crisis was predicted by a host of economists but it was mainly unforeseen. In the World Economic Outlook, the International Monetary Fund (IMF) even inferred that the threats to the global economy are minimal and for the moment there were no anticipations of any severe economic downturn. The juncture before the crisis was infested with widening global imbalances but owing to the virtue of the world’s largest capital markets and its stable financial regulation and political stability, they saw the global imbalances with sustainability angle. Apart from that the emerging developing countries also found a secure place for investin g their funds in order to earn a huge benefit so that they could sustain their position and enhance their credibility in the debt market in the long run. The United States was also considered to possess a superior monetary policy institutions and monetary policy and monetary policy making environment. But the world economy was shattered with the launch of the economic crisis and the crisis shook down the roots of the formidable US economy (Verick & Islam, 2010, p.v). The evil effects of the crisis led to the shattering down of the trade scenario of the world economy with the plight of tremendously declining unemployment rate of the developing economies and subsequent rescue efforts of the government. Launch of the crisis The global economic crisis emerged in September 2008 following the collapse of the strong US financial institution, the Lehman Brothers with the result of the accumulation of the defaults on the mortgages and the derivative products (Lin & Treichel, n.d., p.7). Imme diate impact The financial sector crisis very quickly led to the significant decline in the credit volume in the private sector as well as sharp rise in the interest rates. The equity market crashed and the real growth rate around the globe declined significantly below the projections and the US along with the developed economies. The only exception was China and developing Asia who maintained robust growth (Lin & Treichel, n.d., p.8). The root causes The microeconomic dimension Real estate bubble burst The primal reason for the outburst of the crisis was the bubble burst in the US real estate market. As the house price falling rapidly in the second quarter of 2007, the growth rate of the prices of the real estate saw a declining trend since 2005. In the late 1990s, the housing prices began to rise sharply and deviated from their fundamental characteristics. Reaching the summit in April 2006, the bubble burst rose heavily with the tightening of the monetary policy of the Federal Res erve. With signs that the exaggerated rise in the real estate was coming to an end, the banks decided to issue NINJA loans which were made without any prior income declaration from the borrowers to start paying off debt. With the intensification of the downturn in house prices, the mortgage

Wednesday, February 5, 2020

Identtifying a Nation's Possibilities. Costa Rica Essay

Identtifying a Nation's Possibilities. Costa Rica - Essay Example In 1969, a constitutional amendment was adopted to limit to a single term the length of a President’s and Legislators tenure. This prohibition was however overturned in April 2003 effectively paving the way for the President to seek a second term. In that election, Oscar Arias Sanchez received 40% of the popular vote. The next elections are slated for February 2010. Costa Rica has a unicameral Legislative Assembly. The assembly at full seating has fifty-seven (57) members. The members are elected by direct popular vote to a single four-year term. The Legislature writes and enacts laws for the country. Elections into the Costa Rica Legislative Assembly were held in 5 February 2006, the next scheduled polls are to be in 2010. Costa Rica does not have provincial legislature, they were abolished in 1998. The Costa Rican Judiciary is independent of the executive and the legislature. Costa Rica highest court is the Corte Suprema or Supreme Court. The court is composed of twenty-two (22) elected Justices. The Justices are elected by for renewable eight-year terms. The terms are only renewable by the Legislative Assembly. Costa Rica’s legal system is based on Spanish civil law. There is judicial review of legislative acts in the Supreme Court. Costa Rica is also a signatory of the International Criminal Justice jurisdiction. Although Costa Rica has no military; the Federal Government maintains a domestic Police force and an armed National Guard. President Jose Figueres Ferrer abolished the army in after the 1948 civil war. The abolition became an act of the constitution in 1949. Current President Oscar Arias Sanchez declared December 1 as the Military abolition day. Costa Rica’s political parties are very ideological with nationalist, progressive, libertarian, socialist and leftist agendas. The leading parties include Citizen Action Party (PAC), Costa Rican Renovation Party (PRC), Democratic Force Party (PFD), General Union Party ( PUGEN),