Why Maldivian Students Prefer Abroad for Their Higher Studies Rather Than Study in Local?

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There are still differences in the theoretical approaches to the analysis of economic cycles and alternative, opposing views are still being expressed about the role of monetary policy in stabilising output fluctuations, a significant convergence of approaches and views has occurred. Today, conceptual differences are much less stark. Most elements of the neoclassical critique have become accepted. For instance, the notion of a long-term vertical Phillips curve and the central importance of expectations are largely undisputed.

The seizure in the banking system precipitated by BNP Paribas announcing that it was ceasing activity in three hedge funds that specialised in US mortgage debt. The global financial system forced western governments to inject vast sums of capital into their banks to prevent them collapsing. The priority was to keep interest rates high as a bulwark against inflation rather than to cut them in anticipation of the financial crisis spreading to the real economy. When the global economy was on the turn, international co-operation started to disintegrate as individual countries pursued their own agendas. The US is drowning in negative equity and foreclosed homes. Fiscal policy will be tightened over the coming months as tax breaks expire and public spending is cut and the global economy will be plunged back into recession next year as the US goes backwards and the euro comes apart at the seams.

At the same time, New Keynesian features such as nominal rigidities have retained a central role in explaining data. The literature on optimal monetary policy (see, for example, Woodford (2003) for a survey of that literature) emphasises output stabilisation as a central element. The so-called New Neoclassical Synthesis, as presented by Good friend and King (1997), expresses a consensus that combines long-term neoclassical and real business cycle features with New Keynesian short to medium-term adjustments. Models used by central banks, including the ECB, embody these features, emphasising the optimal behaviour of agents over time and rational expectations, but they also take into account the existence of nominal rigidities, imperfect competition and incomplete information.

The US, uniquely the US family unit was the demander of final resort for the worldwide economy in the mid-2000s. The outcome was a rising current record shortage and a development of obligation; the ordinary equilibration component of a fall in the dollar and higher loan costs was damped by capital inflows, halfway reflecting requests for safe resources (a considerable lot of which, similar to AAA-evaluated MBS tranches turned out not to be so sheltered), and mostly mirroring the fare drove development models of a few nations and their venture of continues from mediation to smother coin thankfulness. The central bank will obviously respond to the impacts of its activities on business sectors and economies to the degree those impacts input on the US in ways that endanger its quest for stable costs and high work.

In addition, worldwide monetary markets and economies have gotten through an exceptionally turbulent period lately, and it would seem that there might be more knocks to come. I noted toward the start of my discussion it is uplifting news that the Federal Reserve trusts that the US economy is sufficiently vigorous that monetary and cost solidness will soon require an expansion in loan fees. In the meantime, we ought to wish each accomplishment to the ECB, BOJ, and other national banks to animate their economies and keep away from flattening. Adaptable economies, sound strategy systems, and strong budgetary segments is the thing that we everything should get through this period and value steadiness. Singapore has been in the bleeding edge in such manner. I trust my discourse today will offer you some assistance with anticipating and get ready for what may lie ahead.

Reference

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https://www.ecb.europa.eu/press/key/date/2003/html/sp030307_1.en.html

Speech by Lucas Papademos, Vice President of the ECB

Speech delivered at the International Symposium of the Banque de France on “Monetary Policy, the Economic Cycle and Financial Dynamics”

Paris, 7 March 2003

http://www.theguardian.com/business/2011/aug/07/global-financial-crisis-key-stages

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Fiscal policy and the global financial crisis

February 2009

Torben M. Andersen

School of Economics and Management Aarhus University CEPR,

IZA, CESifo, and Swedish Fiscal Policy Council.

http://www.rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2012/2012sep75_3bollardng.pdf

Learnings from the Global Financial Crisis

Sir Leslie Melville Lecture, Australian National University, Canberra, 9 August 2012

Alan Bollard and Tim Ng

http://www.agmanager.biz/about/contributors/Presentations/Langemeier/Baily_Elliott_2009.pdf

The US Financial and Economic Crisis: where does it stand and where do we go from here?

Martin Neil Baily and Douglas J. Elliott

June 2009

https://www.imf.org/external/pubs/ft/weo/2009/01/pdf/text.pdf

WORLD ECONOMIC OUTLOOK

April 2009

Crisis and Recovery

https://www.aei.org/publication/confusing-cause-and-effect-in-the-fiscal-policy-debate/

http://delong.typepad.com/sdj/2005/09/monetary_policy.html