The aggressive easing of monetary conditions during COVID has resulted in global inflation. Reacting to this,...

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The aggressive easing of monetary conditions during COVID has resulted in global inflation. Reacting to this, central banks around the world have raised interest rates. While this has caused inflation to come down from its peak, the fear now has shifted to the possibility of the world entering into a recession. (c) Discuss whether you think the banking crisis in Silicon Valley Bank, Signature Bank and Credit Swiss will lead to contagion in the global banking sector. (Word limit: 250 words) (10 marks) The aggressive easing of monetary conditions during COVID has resulted in global inflation. Reacting to this, central banks around the world have raised interest rates. While this has caused inflation to come down from its peak, the fear now has shifted to the possibility of the world entering into a recession. (c) Discuss whether you think the banking crisis in Silicon Valley Bank, Signature Bank and Credit Swiss will lead to contagion in the global banking sector. (Word limit: 250 words) (10 marks)

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The recent bank failures raise concerns about a potential domino effect in the global financial syst... View the full answer