The Australian Dollar: The Global Financial Crisis
Executive Summary
As we know the Australian dollar was floated in 1983. And after that, it becomes the most of impact currency in the world. Within current year, the Australian dollar hit a highly record, especially the period of Global Financial Crisis.
In this report, it will take United State dollar (USD), Japanese Yen (JPY), Chinese’s Renmingbi (CNY), Euro dollar (EUR) and the New Zealand dollar NZD as examples, which are the major countries’ currencies to influence Australia dollar.
Also, it will illustrate Current global financial systems which is the greatest lesson in the GFC is that high leverage lead to asset bubbles is very dangerous, once the bubble burst, it will affect the real economy and employment. In addition, Australian …show more content…
The U.S. financial crisis triggered by the global financial crisis has fully exposed the flaws and shortcomings of the existing global financial system, deep-seated reasons for these problems is the cultural distortions, the crisis also shows that the cultural reconstruction in reforming the international financial system, building a new international financial order process are very important (Dick, …show more content…
Crisis mitigation relief mechanism is narrower, which has exacerbated the risk factors of the international financial, greatly reduces its proper function, and even helps the outbreak of international financial crisis (Delargy and Charles, 1999).
The financial crisis has fully exposed the current international financial regulatory system has a large number of defects. Therefore, the almost complete deregulation of international system in the western world must be reversed.
Firstly, there is a lack of effective regulation of financial markets. The major western developed countries are lack of effective regulation of financial markets, resulting in excessive financial innovation, far beyond the physical needs of economic development. It is one of the important reason trigger the financial crisis. Secondly, global financial regulation is lack of coordination mechanisms. National financial regulatory authorities lack the necessary communication and coordination in global financial regulation. Thus, it cannot be able to control and block the spread of financial risks on a global
As we know the Australian dollar was floated in 1983. And after that, it becomes the most of impact currency in the world. Within current year, the Australian dollar hit a highly record, especially the period of Global Financial Crisis.
In this report, it will take United State dollar (USD), Japanese Yen (JPY), Chinese’s Renmingbi (CNY), Euro dollar (EUR) and the New Zealand dollar NZD as examples, which are the major countries’ currencies to influence Australia dollar.
Also, it will illustrate Current global financial systems which is the greatest lesson in the GFC is that high leverage lead to asset bubbles is very dangerous, once the bubble burst, it will affect the real economy and employment. In addition, Australian …show more content…
The U.S. financial crisis triggered by the global financial crisis has fully exposed the flaws and shortcomings of the existing global financial system, deep-seated reasons for these problems is the cultural distortions, the crisis also shows that the cultural reconstruction in reforming the international financial system, building a new international financial order process are very important (Dick, …show more content…
Crisis mitigation relief mechanism is narrower, which has exacerbated the risk factors of the international financial, greatly reduces its proper function, and even helps the outbreak of international financial crisis (Delargy and Charles, 1999).
The financial crisis has fully exposed the current international financial regulatory system has a large number of defects. Therefore, the almost complete deregulation of international system in the western world must be reversed.
Firstly, there is a lack of effective regulation of financial markets. The major western developed countries are lack of effective regulation of financial markets, resulting in excessive financial innovation, far beyond the physical needs of economic development. It is one of the important reason trigger the financial crisis. Secondly, global financial regulation is lack of coordination mechanisms. National financial regulatory authorities lack the necessary communication and coordination in global financial regulation. Thus, it cannot be able to control and block the spread of financial risks on a global