International capital movements can bring major gains

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Reference no: EM13159803

International capital movements can bring major gains both to the lending or investing countries and to the borrowing countries, through intertemporal trade and through portfolio diversification for the lenders/investors. But international lending and borrowing is not always well-behaved, financial crises are recurrent.

          Develop a detail paper (at least 6 pages with a minimum of 5 cited references in APA 6th edition format) analyzing the empirical reasons for the international financial crisis and the role of the International Monetary Fund. Your paper should be APA format and structured as follows

  • Cover page with a running head
  • Introduction
  • International capital flows
  • The International Monetary Fund
    • International Lending and borrowing between industrialized countries
    • International Lending by industrialized countries to developing nations
  • Reasons behind International Financial Crisis
    1. Overlending and Overborrowing: The Asian Crisis of 1997
    2. Exogenous Shocks
    3. Exchange Rate Risk
    4. Large Increases in Short-Term Debt to Foreigners
    5. Contagion
  • Resolving the Crisis
    • Rescue Package
    • Debt Restructuring
  • Conclusions
  • References

Reference no: EM13159803

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