In the 1980s Latin American countries ran into debt crisis. Heavy debt has been the shade that cannot be waved all the time. Commercial banks＇ expansionist thrnst into Latin America made these countries go deeply int...In the 1980s Latin American countries ran into debt crisis. Heavy debt has been the shade that cannot be waved all the time. Commercial banks＇ expansionist thrnst into Latin America made these countries go deeply into the debt crisis. International Monetary Fund played an indispensable role in resolving the crisis. It might temporarily steady the financial situation of an area, but it was difficult to stem the enormous economical loopholes of these countries and couldn＇t solve the basic problems of economy, politics and society. It was unable to make the countries pass the crisis substantially.展开更多
The successive failures of Silicon Valley Bank and two other United States(US) banks triggered a wave of market panic. This study argues that this case should be viewed as a systemic crisis, highlighting the fragility...The successive failures of Silicon Valley Bank and two other United States(US) banks triggered a wave of market panic. This study argues that this case should be viewed as a systemic crisis, highlighting the fragility of the US banking system. Although the turmoil in the banking sector gradually subsided owing to the strong intervention of the US government, it has not ended. Instead, the banking turmoil has transformed into a long-lasting “slow crisis,” which can be characterized as “boiling a frog in warm water,” presenting a comprehensive socio–economic crisis. From a historical and global perspective, the current banking crisis in the US has developed against the backdrop of the once-in-a-century changes that shape the world. Furthermore, its evolutionary path will be different from that of previous ones.展开更多
The subprime mortgage crisis and the resultant inflationary monetary policy in the USA have left the Chinese economy subject to four risks in particular. First, China＇s exports to the USA might continue to decline. S...The subprime mortgage crisis and the resultant inflationary monetary policy in the USA have left the Chinese economy subject to four risks in particular. First, China＇s exports to the USA might continue to decline. Second in the medium term, the higher US inflation rate will lead to a weak dollar, which will negatively affect China＇s exports. Third in the long term, when the US Federal Reserve decreases money supply to control inflation, the US economy might enter another recession, hurting China ＂s exports further. Fourth, China＇s foreign exchange reserve assets might suffer heavy losses when the US inflation rate rises. Conventional foreign exchange investment strategies are insufficient for dealing with these four risks. Investment by China in the major US banks is suggested in the present paper. This strategy would mitigate if not eliminate all four risks. China could gain considerable financial returns on investments with only moderate risk.展开更多
文摘In the 1980s Latin American countries ran into debt crisis. Heavy debt has been the shade that cannot be waved all the time. Commercial banks＇ expansionist thrnst into Latin America made these countries go deeply into the debt crisis. International Monetary Fund played an indispensable role in resolving the crisis. It might temporarily steady the financial situation of an area, but it was difficult to stem the enormous economical loopholes of these countries and couldn＇t solve the basic problems of economy, politics and society. It was unable to make the countries pass the crisis substantially.
文摘The successive failures of Silicon Valley Bank and two other United States(US) banks triggered a wave of market panic. This study argues that this case should be viewed as a systemic crisis, highlighting the fragility of the US banking system. Although the turmoil in the banking sector gradually subsided owing to the strong intervention of the US government, it has not ended. Instead, the banking turmoil has transformed into a long-lasting “slow crisis,” which can be characterized as “boiling a frog in warm water,” presenting a comprehensive socio–economic crisis. From a historical and global perspective, the current banking crisis in the US has developed against the backdrop of the once-in-a-century changes that shape the world. Furthermore, its evolutionary path will be different from that of previous ones.
文摘The subprime mortgage crisis and the resultant inflationary monetary policy in the USA have left the Chinese economy subject to four risks in particular. First, China＇s exports to the USA might continue to decline. Second in the medium term, the higher US inflation rate will lead to a weak dollar, which will negatively affect China＇s exports. Third in the long term, when the US Federal Reserve decreases money supply to control inflation, the US economy might enter another recession, hurting China ＂s exports further. Fourth, China＇s foreign exchange reserve assets might suffer heavy losses when the US inflation rate rises. Conventional foreign exchange investment strategies are insufficient for dealing with these four risks. Investment by China in the major US banks is suggested in the present paper. This strategy would mitigate if not eliminate all four risks. China could gain considerable financial returns on investments with only moderate risk.
