Economics > ESSAY > Finance Analysis part 2 and 3 (All)

Finance Analysis part 2 and 3

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Part 2. (50 points) The financial crisis. When the housing bubble burst, it had a devastating effect on the economy, causing the financial crisis and the Great Recession. Many argue that the Fed sho... uld stop asset bubbles when they start forming and before they burst. Discuss the pros and cons of the Fed intervening in such situations. Your answer should not be more than 1200 words (there is a 10% penalty if you exceed this limit). In your answer, you must touch on the following topics: a) identification of the bubble b) how the Fed can react to a bubble c) cost/benefit analysis of the Fed reaction to a bubble d) few recommendations to make the financial system more resilient to bubbles. You should submit original work. You must cite all the papers that you use in your analysis (you cannot copy and paste, and you cannot use only one source). Your answer should use economic logic and at a minimum cover the topics I outlined. An enumeration of ideas without proper motivation and analysis will result in a low score. Your submission will be automatically checked for originality with SafeAssign. Part 3 (15 points) Banking Are bank consolidations a good thing? Discuss the pros and cons (3 of each) of bank consolidations. Your answer should use economic logic. An enumeration of ideas without proper analysis will result in a low score. [Show More]

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