Financial Crisis

After the global financial crisis, we see the failures in policies, the regulation and supervision of banking institutions. The lack of consistency and coherence of policies in regulation, supervision, and crisis management leads to a need for a reassessment of the global financial structures. The benefits and costs of open financial markets have to be reconsidered after the crisis. The crisis has reflected a number of problems in financial regulation and rules. Also, there is a revolution in the risk management of many financial institutions. The global nature of the integrated financial markets posed a significant risk with serious economic consequences. As a result, a revolution in the international financial structure is needed to stabilize the financial market.

Lessons from the financial crisis for reorganizing financial systems are discussed in this term paper, including macroeconomic policy and financial regulation. To figure out the problem, we have to find out the causes of the global financial crisis by historical perspectives and a combination of different elements common to other financial crises.
The global crisis needs government interventions especially in developed countries.

The crisis pinpointed that the global financial architecture is still far from satisfactory for the closely-integrated financial systems. There are improvements in many areas such as surveillance, information sharing, and liquidity support. This crisis has some similarity but also differences with previous crises. To restore confidence in financial systems is one of the important government interventions. Research in these kinds of hot debate would be useful to help guide policymakers.

Unsustainable asset price increase, excessive debt burdens and the failure of regulation and supervision are the four major courses in the crisis.
Prior to the crisis, house prices increased substantially in the U.S.
The consequences of the U.S. housing boom and its
process is...