To Analysis the Policy's In Place by Major Economies and Their Implications on the Current Global Crisis

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The aim of this study is to observe the current economic problems arising within each leading countries and distinguish how they compare with the UK and analysis to current banking policies and how they affect their economic status. This research investigates into the current banking regulations and establishes how each leading country observes their surroundings based on their rules and regulations and measure the effects of each leading countries financial systems, and how they performs against the UK, to establish a solution towards the current financial downturn. This research is founded on the secondary data. The research encompasses the publications, articles and similar studies accessible on the internet. The findings & conclusions are based on the secondary data. The methodology used for the purpose of this research is based on the secondary data. This research analyzes that, and important characteristic of self-fulfilling crisis is that they are fundamentally unpredictable and therefore anticipating crisis is extremely difficult. Although searching for predictors of crisis in the crisis model seems to be difficult task, the model, however, suggests possible indicators of vulnerability to a speculative attack. For the costs of banking crisis, there are two types of costs involved: output costs and fiscal costs. Aside from macroeconomic variables such as real GDP growth rate, output costs of banking crisis tend to be significantly influenced by resolution policies. Comprehensive deposit insurance coverage and strict bank capital adequacy requirements tend to reduce the output costs of crisis. Debt strategies and risk management practices by public and private sectors are extremely important for emerging markets because they can reduce exchange rate and liquidity risks and reduce the effects of crises.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

Background of the Study1

Research Questions2

Outline of the Study2

Crisis Models4

Crisis Analysis5

Crisis Management in Developing Economies6

Currency Crisis7

Banking Crisis8

Sudden Stops9

Institution Arrangements10

Fiscal Vulnerability, Sustainability and Crisis12

Significance of Fiscal Policy13

Role of Fiscal Sustainability14

CHAPTER 03: RESEARCH METHODOLOGY16

Research Methods16

Qualitative Research Method16

Quantitative Research Method17

Research Design17

Search Technique19

CHAPTER 04: DISCUSSION21

The Impact of Crisis on the Economy21

Role of the Financial Sector in Causing Currency Crisis22

Effect of Crisis on Investment and Growth23

Determinants of Crisis24

The Impact of Currency Crisis26

The Impact of Sudden Stops27

Determinants of Sudden Stops28

The Impact of Banking Crisis29

CHAPTER 05: CONCLUSION31

Analysis of Causes of Crisis31

Foreign Currency Debt33

Sound Debt Management33

Precautionary Measures34

REFERENCES36

CHAPTER 01: INTRODUCTION

Background of the Study

The literature on crisis has been using early warning system (EWS) models to identify the ...