金融学essay格式范例：金融体系的繁荣和衰退

金融学essay格式范例：金融体系的繁荣和衰退

Introduction 介绍
 

长期以来，金融因素对实体经济的影响一直是经济学家们热点关注的问题。在金融领域，金融体系和金融政策日益成为经济体系中不可或缺的一部分。经济周期理论的财务中的性组在前期受到严重挑战（约维奇，2006年）。在20世纪80年代，金融市场和内生增长模型的完美融合丰富的经济周期理论。金融因素在宏观经济波动中具有重要地位，可以通过使用内生增长模型予以肯定，近年来随着金融监管的逐步放宽和金融创新、金融全球化和金融工具的多样化，金融工具的流动性大大增强，从而增加和放了大金融风险。本文首先论述了世界金融体系的发展状况。其次，通过对2008年的金融危机分析，探讨了影响金融体系繁荣与衰退的原因。最后，它将总结一个国家在金融周期中遇到这些原因后的各个阶段反应和措施。

For a long time, the role of the impact of financial factors on real economy has always been a hot issue of concern for economists. In the financial sector, the financial system and financial policy have increasingly become an integral part of the economic system. The economic cycle theory’s financial neutral set in the early stage is seriously challenged (Jović, 2006). In the 1980s, the perfect fusion of financial markets and endogenous growth model enrich the theory of economic cycles. The financial factors having an important position in macroeconomic volatility source and strong conduction can be affirmed by the use of endogenous growth model.In recent years, along with the gradual relaxation of financial regulation and the continuous emergence of financial innovation, financial globalization and diversification of financial instruments have greatly enhanced the mobility of capital, thereby increasing and amplifying the financial risk. In this essay, it will firstly discuss the development status of the world financial system. Secondly, it will explore the reasons of affecting the financial system’s prosperity and recession through the analysis of the example of the 2008 financial crisis. Finally, it will summarize measures of a country’s response in the various stages of the financial cycle under these reasons.
 

The development status of the world financial system 世界金融体系的发展现状
 

There are a lot of new features to the world financial system, so it needs to study and grasp the regulations. First of all, in the whole world sphere, the financial system presents a holistic performance displaying as the internationalization of the currency and the integration of the financial system. At present,the global financial system has been formed as a single entity, a new pattern of complementary linkage and a place where the problem will immediately cause a chain reaction. Second, the global financial system is fragile. In case that a link has been signs of trouble, it will immediately form a butterfly effect. Therefore, the entire financial system will have a chain effect. Unfortunately, this trend is unable to control.Although the subprime crisis itself is only involved with hundreds of billions of dollars, it affected the whole world (Zikmund, 1997). Moreover, there is an excess liquidity in the global financial capital. The vast majority of the world's wealth is owned by a few people, thus it greatly increases the flow risk of financial capital. These financial predators make the speculation to a certain extent, and then obtain the shareholders’ moneywith the result of a financial disaster in future markets, stock markets, housing markets and foreign exchange markets,. There is no exception from the financial turmoil in Thailand to the financial risk of the SouthAmericas.This has become an established formula and the basic law. Finally, it becomes more frequent to the cyclical nature of the financial fluctuations. After World War II, the global economic crisis has been converted from overproduction crisis in the past into a financial crisis. This is the new law of the world economic crisis of capitalism.

Effect of the 2008 financial crisis  2008年金融危机的影响
 

The 2008 economic crisis has been the most serious crisis of the world economy sincethe Great Depression crisis in 1930.The 2008 financial crisis occurred when three foams asreal estate, financial markets and the stock market ruptured simultaneously in the big countries of the Western economies. Because these countries dominate the whole world economy, so once they get into a crisis, all countries would be implicated, including China (Bondt, 2010). Market bubble is the inevitable product of the free market economy. China’s internal reform and opening up to the world initially enter the free-market competition. Of course, it will inevitably have to accept the impact and the challenge of the market bubble and the financial crisis.

The 2008 economic crisis mainly has the following characteristics: First, it caused huge damage as it spread to the world's richest countries. As a result, there was a crash in the stock market and the process of recovery was very slow. Second, it was a wide range of impact, especially causing an extremely far-reaching impact to the major import and export trade countries which had a developedeconomy andtechnology. Third,it led to a serious damage to the global insurance companies and commercial banks. As known to all, the world's largest commercial banks emerged a huge loss, whichinduced the collapse of the real economy. Fourth, in order to save the national economy, the governments had to rescue market. And bailout funds like Britain and the U.S. was probably on account of 13 percent of its GDP (Shlens, 2009). The huge losses in the banking system were caused by the greed of the bankers, the government's macro-control ineffective, the failure to supervise banks, excessive loans and investment, and securitization of the asset.
 

Causes of the booms in the financial system金融体系繁荣的原因
 

First, in the face of the recession of the financial system, the Governments around the world, especially those important countries whose economies have a great impact onthe world economy, take a positive self-help measures. Once the outbreak of the economic and financial turmoil happen, the fiscal measures of these governments will become active instead of being robust (Andrew, 2009). For example, after the economic crisis in 2008, China has poured 4 trillion investments in construction of infrastructure projects and key projects. At the same time, the limited local governments which have to right to issue bonds provide a financing support to the local development. This greatly stimulates the economy and promotes the recovery.

Second, the constant improvement of the financial system has provided a guarantee to the prosperity of the financial system. The maturing improvement of the financial system has greatly reduced the financial system disorders due to objective factors. At the same time, a sound financial system also improves the speed and efficiency of the whole financial market (Geert, 2009). The financial system raises the times of contact in the world-wide, increases the communication of information, and reduces the financial system’s disorders caused by asymmetric information.

Finally, the stability of the international environment creates a booming hotbed forthe stability of the financial system. Since after World War II, the world's environment tends to be peaceful. A large-scale war does not occur and a long-term peaceful environment is likely to continue. Peaceful environment clears obstacles for the development of economy. Furthermore, it also promotes the prosperity of the financial system.
 

Causes of the slumps in the financial system在金融系统的衰退原因
 

First, the financial system is lack of control. The basis of the classical economic theory is the efficient market theory considering that government economic intervention should not do too much (Freund &Weinhold, 2004). Developing countries such as China have been regarded as non-market economy countries. However, the role of government regulatory is important sometimes. The U.S. government once supported and sponsored enterprises to provide mortgage loans. At last, the government’s deregulation to economy stimulated the competitionof banking industry like the mortgage industry. In order to attract new customers, managers provided zero deposit loans to first-time buyers. These government measures led to potential problems for the financial crisis. Government negligence and lax regulation to this phenomenon greatly promoted the mortgage and financial recession.

Second, financial innovation has increased the risk of the financial markets. With a loose policies and systems, to maximize the benefits becomes a rational person's goals to pursuit, and the innovation of financial product has brought huge profits to the financial industry. Bank has also joined in this process: mortgage in the balance sheet was easily stripped out and it was packaged into tradable bonds MBS (mortgage-backed securities), and then MBS were packaged into different credit risk CDOs (collateral loans). Finally it was sold to investment companies. After that, banks derived substantial transaction fees. In this transaction, the transaction object has not only limited to bonds, stocks and commodities, but credit. For example, a financial product obtaining a credit guarantee of a bank or an insurance company is marked by the AAA credit in order to be easy transaction. These new financial products themselves area great risk.#p#分页标题#e#

Finally, investors improve the financial market risks and accelerate the recession of financial system. A large number of new financial products get the attention of investors. This directly causes a demand for credit products. It can be sure that it comes from the U.S. lower interest rate lower than the rate of inflation, whileprices of house and other assets are high. Investors prefer using low-interest loans to buy houses and financial derivative products. With a large number of financial products flooding the market, individual investors and institutional investors feverishly purchase the products. At last, the potential crisis spread to the financial system.
 

Factors that influence the financial cycle影响金融周期的因素 
 

The economic crisis cannotbe avoided because the balance of supply and demand cannot be achieved in the short term. This imbalance has a certain political orientation. Moreover, because ofthe irrational behavior of consumers and investors,cyclical crisis occurs and causes extensive damage. The factors that will influence how long it is before the next cycle begins are summarized as follows.

First, the fluctuations of the internal and external environment will shorten the time of the financial cycle. The economic cycle is rooted in some fluctuations outside the market economic system such as war, revolution, choose, price of oil, a gold mine, immigration, scientific breakthroughs and technological innovation, even sunspots and weather and so on. Internal theory can be used to explain the reasons that lead to the periodic cycle up and down fluctuations of the socio-economy from the operational mechanism of the factors of the market economic system itself. These factors include the investment, consumption, savings, money supply and interest rates (Pons &Fourati, 2003).

Second, the monetary cycle has an impact on the financial cycle. Banking system alternately expanding and tightening credit will cause the economy cyclical fluctuations (Ergungor, 2003). Due to the multiplier effect of money, when the banking system reduces interest rates andexpands credit, the businessmen will increase the loans, which lead to the production expansion and increasing revenue. However,the improvement of annual revenue would lead to the increase in demand and prices of goods. So the level of economic activity increasesand the economy has entered into the boom phase.

Finally, excessive investment will accelerate the arrival of the recession. The economic cycle is rooted in excessive production investment. This theory holds that increased investmentspromote economic prosperity (Levine, 2002). That prosperity is first expressed in the increase in demand for investment goods as well as the rise of the price of investment goods (Levine, 2004). This has further stimulatedthe investment in capital goods. The over-development of the production of capital goods has caused a reduction in the production of consumer goodsand induced the imbalance in the economic structure. Too much production of capital goods are bound to cause excess capital goods, so there is an overproduction crisis, and then the economy enters into a depression (Chandler, 2004)
 

National policieson the booms and slumps in the financial system国家政策的繁荣和衰退的金融系统
 

Financial market boom-bust cycle causes a far-reaching impact on the development of all countries. In order to adapt to the changes in the international financial environment in economic globalization, governments must take timely measures. When the recession happens,take domestic financial protection measures to avoid the impact of the financial crisis (Allen & Gale, 2000). In the prosperity of the financial system, seize the opportunity to accelerate the development of the national economy. First, strengthen the country's financial regulation. A too open financial system will increase the risk of financial market. Necessary financial controls will improve the sensitivity of the government in the regulation of financial markets. Second, establish a sound monetary system. Thealternately expanding and tightening credit of the banking system causes economic cyclical fluctuations. To avoid such fluctuations, it must improve the monetary system. Finally, before the arrival of the financial crisis, establish a sound financial protection barrier. 
 

Conclusion总结
 

Several times of the financial crisis show that the bubble and the volatility of virtual economyled to the same features of the real economy.However, this cyclical performance is more obvious before and after the financial crisis and usually appears as the expansion and adjustment of financial development state, which is often overlooked. Clearly, macroeconomic policies are important causes of the financial cycles, and financial cycles reverse constraints to the development and implementation of economic and financial policies. In the economy of stressing the financial stability, only when the financial development state does not appear to ups and downs, the financial system can provide the national economy healthy a stable and sustainable development. The financial markets and financial instruments are an effective carrier and transfer medium of the macro-economic control policies. Even so, the financial cycle still exists objectively and the trend of the financial system functions continuously improving the depth and breadth will not change.

 

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