Financial Crisis

Financial Crisis

Please choose 4 Questions from the list of 6.
Responses should be about 700 words per question.
01. Compare and contrast the 2008 world financial crisis with other economic crises
(causes, consequences) experienced across the globe over the past 30 years. In your
view, has the primary source of financial instability in recent decades come largely from
the private sector or public sector or both? Does it matter?
02. What is the role of countercyclical macroeconomic policies in a financial crisis? Did
the US and Canada establish appropriate monetary and fiscal policies during the crisis
during the recovery? Did the political and banking leaders of the US and Canada do a
good job in explaining their policy decisions to citizens? Explain?
03. Are the probabilities and risks associated with a future financial crisis higher or
lower in the wake of the handing of the 2008 world financial crisis? What have we
learned? Will history repeat?
(14. What is a fiscal multiplier? Why is it important for policy makers to have a sense of
the value of the fiscal multipliers when constructing fiscal stimulus or austerity policies?
What were the factors behind the recent debate over the value of the multipliers? If you
were a policymaker, where would you stand on the “value of the multipliers” debate
and how would this influence your position on policy (i.e., size of stimulus; speed of
consolidation)?
05. Do you think’the Bank of Canada’s focus on inflation creates a trade-off with other
important objectlveflikeui‘owth and financial stability? What do you think are some of
the major stmouthsandweakoesses of the new monitorinu tools beinu deveiOped by
central banksandthe i’MF to anessthe vulnerabilities of our financial system?
0.5- WW.WWPflnwlminu economist from Yale University has argued
MWWMNBQWW“ mid humanized so, that finance can
mammmmm When is financial speculation a positive force
t-:.’.’)t . ‘1’ I i . -” ‘- ‘3’ ‘.‘ – 1‘” x ‘ ‘ e
gm What principles should suit! the implementation of

Leave a Reply