Let us explore Modern world of Finance - Leads to Crisis situation now …
Complex models lead financial crisis today ? ? ?
This is main topic for this month 17th October 2008 to 17th November ௨00௮
- Let us join hands to contribute things in this area ...
In times of globalisation the economic environment changes rapidly. Capital movements
become larger and at the same time less controllable. Therefore, the need for a stabilising system becomes more and more apparent. In the past such a system has been established at the conference of Bretton Woods. Already in 1944 the British economist John Maynard Keynes emphasised “the importance of rule-based regimes to stabilise business expectationssomething he accepted in the Bretton Woods system of fixed exchanged rates.”1 Recently leading industrial nations have been calling for a renewal of the purpose and the spirit of this system in order to cope with the growing size of international trade and capital flows. This essay gives a short overview of the system’s development from 1944 until today and stresses especially problems and obstacles. It identifies mistakes that have been made and points out aspects that have to be taken into account when implementing a “new system of Bretton
Woods”.
Source: Sabine Dammasch
Regards,
ADJ
In times of globalisation the economic environment changes rapidly. Capital movements
become larger and at the same time less controllable. Therefore, the need for a stabilising system becomes more and more apparent. In the past such a system has been established at the conference of Bretton Woods. Already in 1944 the British economist John Maynard Keynes emphasised “the importance of rule-based regimes to stabilise business expectationssomething he accepted in the Bretton Woods system of fixed exchanged rates.”1 Recently leading industrial nations have been calling for a renewal of the purpose and the spirit of this system in order to cope with the growing size of international trade and capital flows. This essay gives a short overview of the system’s development from 1944 until today and stresses especially problems and obstacles. It identifies mistakes that have been made and points out aspects that have to be taken into account when implementing a “new system of Bretton
Woods”.
Source: Sabine Dammasch
Regards,
ADJ
3 comments:
the financial system followed is structural capitalistic, which is followed by many.
the present crisis mainly due to the lending poliocies of macro economy.
if we have creative capitalism i would be better, and more concentraion is needed for developing the micro economy.
but nobody thinks of micro economy
crisis is not still over, it is the starting.
the recession fear is still more, now only the financial sector has filed bankruptacy, next to follow is the manufacturing industry (FORD, GM) are thinking of mergers and exepcting government aid for releif.
now job cut in auto industry is high in coming months or year.
we can't find a solution now. it may take some time.
the current country leading the financial market is usa, it must be lead by other country either by india or china or some middle east country in coming years is possible.
nice
expecting something more about the current recession, followed by the USA supermacy in financial market.
if the current situation continues we can expect the lows of dow to 1940's
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