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

Causes of the u.s. savings and loans crisis, Q. Explain the causes of...

Q. Explain the causes of the U.S. Savings and Loans crisis of the early 1980s. Answer: On the one hand permitting S&L to make a lot riskier loans for instance loans on co

Calculus, Application of defferential calculus in economics

Application of defferential calculus in economics

Free trade, what are the limitations of net barter terms of trade

what are the limitations of net barter terms of trade

Fixed exchange rates, Q. "Fixed exchange rates are not even an option...

Q. "Fixed exchange rates are not even an option for most countries." Discuss. Answer: Durable fixed exchange rate arrangements may possibly not even be possible unless c

Bretton woods system of fixed exchange rates, Q. Explain why the oil ...

Q. Explain why the oil price shocks after 1973 made countries unwilling to revive the Bretton Woods system of fixed exchange rates. Answer: Using the GG - LL framework

Economics, discuss the central economic problem facing this group of surviv...

discuss the central economic problem facing this group of survivors.

Why are prices of factors of production not equalized, Q. Why are prices o...

Q. Why are prices of factors of production not equalized? Answer: Again this statement may not or may be argued to be true. On the other hand, the growth and large volume in

Present the case for floating exchange rates, Q. Present the case f...

Q. Present the case for floating exchange rates. Answer: 1. Monetary policy autonomy Governments would able to use financial policy to reach internal and extern

Show the effects of permanent increase in u.s. money supply, By Using the f...

By Using the figures for both the short run and the long run graphs, Demostrate the effects of a permanent increase in the U.S. money supply Economy.  Try to line up your figures t

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