We have studied a number of financial crises that have occurred over the past thirty years. The
Question:
We have studied a number of financial crises that have occurred over the past thirty years. The Mexican peso (1994), Asian Financial (1997-98), Russian (1998), Brazilian (2000), Argentina (2001), Global Financial (2007-09), and Euro (2009-2011) are all examples, and more recently defaults in Ghana, Sri Lanka, and Egypt have occurred. Without giving me a history of all of these crises though referring to them may help your answer, what are some of the key economic or political variables that can be identified as causing financial crises? Are crises just an unavoidable feature of modern capitalism, or can they be prevented? How can a country prepare itself to avoid these types of crises, and if a crisis occurs, what is the best way to overcome it?
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston