Posted: January 20th, 2016

Your paper should be 1750 words. Please also check the rubric for this project that is stated in this post. Remember that your paper will be automatically submitted to “TurnItIn” for plagiarism review.

Your paper should be 1750 words.  Please also check the rubric for this project that is stated in this post. Remember that your paper will be automatically submitted to “TurnItIn” for plagiarism review. APA formatted and 5% similarity.Make sure you use adequate, credible and reliable APA source 2 citations to support your work

International Lending and Financial Crises

International capital movements can bring major gains both to the lending or investing countries and to the borrowing countries, through intertemporal trade and through portfolio diversification for the lenders/investors. But international lending and borrowing is not always well-behaved, financial crises are recurrent. 

Develop a detail paper analyzing the empirical reasons for the international financial crisis and the role of the International Monetary Fund. Your paper should be APA format and structured as follows:

• Cover page with a running head

• Introduction
• International capital flows
• The International Monetary Fund
  • International Lending and borrowing between industrialized countries
  • International Lending by industrialized countries to developing nations
• Reasons behind International Financial Crisis

1.     Overlending and Overborrowing: The Asian Crisis of 1997

2.     Exogenous Shocks

3.     Exchange Rate Risk

4.     Large Increases in Short-Term Debt to Foreigners

5.     Contagion

• Resolving the Crisis
  • Rescue Package
  • Debt Restructuring
• Conclusions
• References