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Q. Why did the Fed step in to organize a rescue for Long Term Capital Management (LTCM) in September 1998, rather than simply letting the trouble fund fail? Was the Fed's action necessary or advisable?
Answer: To evade what the Fed perceived as a probable meltdown of international banking caused by the crisis in Russia and when Asia and Latin American economies were previously facing a steep economic slowdown. The trouble is moral hazard again.
Q. Explain Tobin's idea of "Don't put all your eggs in one basket." Answer: The idea of diversification advanced with Tobin in his Attitude Towards Risk as well as Por
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Q. What explains the sharply divergent long-run growth patterns? Answer: It lies in the political and economic features of developing countries and the way these have
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As the world seeks to find alternative means to produce clean power, fuel cells emerge as a promising source of power generation. Depending on their type, fuel cells can be utilize
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