Long term capital management, International Economics

Assignment Help:

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.


Related Discussions:- Long term capital management

Classical theory and neo classical theory, difference between classical an...

difference between classical and neo classical theory of international trade.

Member of the wto, Q. It has been claimed that the Chinese burst of modern...

Q. It has been claimed that the Chinese burst of modernization which has been propelling its manufactured exports throughout the world at an unprecedented rate, is made possible b

International trade, International business involves the management of inte...

International business involves the management of international risk. To minimize risks commercial parties utilize independent guarantees and standby letters of credit. (a)  Dis

Compare and contrast economic regions, Compare and contrast China's newest ...

Compare and contrast China's newest economic regions: the Special Economic Zones (SEZs), Open Cities, and Open Coastal Areas. What is the purpose of each regional type? Show how e

International economics: Theory & policy, In a day of production, firms in ...

In a day of production, firms in angola can produce 200 liters of oil or 10 kilograms of tungsten. Firms in Namibia can produce 160 liters of oil or 60 kilograms of tungsten. Which

Explain the concepts of trade creation, When asked by the Carnegie Commissi...

When asked by the Carnegie Commission to prepare a report on post war Preferential Trading Agreements, Viner (1950) pointed out that they are not free trade. He used the concepts o

Explain cost of production in terms of world trade, Q. If scale economies ...

Q. If scale economies were not only external to firms, but were also external to individual sites. That is, the larger the worldwide industry (regardless of where plants or firms

Importance of international trades, Importance of International Trades : T...

Importance of International Trades : The basis of international trade is to be found in the diversity of economic resources in different countries. All countries have not been end

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd