Financial Crisis Impacts on Chinese Economy
Literature review
1 The 2008 global financial crisis
The effects on the U.S. economy have by now been widely analysed and dissected, so several economists have focused on the influences of other countries. Mishkin (2011) pointed out that the inner link between countries’ financial systems was tighter than previously realized. Naudé (2009) studied the correlation between the 2008 financial crisis and the developing countries and proposed that some developing countries were less affected and they had the possibility of recovering through the process of advancing (IMPROVING) their financial system.
The Global Financial Crisis also affected the real economy. Bank failures not only increased the unemployment rate but also affected the normal production of auto, steel and other U.S. economic pillar industries. Furceri and Zdzienicka (2011) described the effect on European economies was obvious and everlasting. Bran, et al (2011) pointed out that American financial crisis has exposed the drawbacks of liberal capitalism. After the crisis, the U.S. government strengthened macroeconomic regulation and control by took (TAKING) over a number of financial institutions and corporate entities. Besides, financial crisis shocked the international community’s confidence in dollar and the dollar hegemony suffered the second shake since the collapse of the Bretton Woods system the 1970s. Curran and Zignago (2011) found that the international financial crisis has affected international trade considerably. However, different countries and industries have suffered from different levels of influence. The electronics, base metals and machinery industries were deeply affected while some other industries did not decrease sharply in trade.
2 Financial crisis contagions
There are several experts focused on the way that financial crisis spreads from one country to another. These transduction ways can be broadly divided into three categories. In the reality of economic operation,
1 The 2008 global financial crisis
The effects on the U.S. economy have by now been widely analysed and dissected, so several economists have focused on the influences of other countries. Mishkin (2011) pointed out that the inner link between countries’ financial systems was tighter than previously realized. Naudé (2009) studied the correlation between the 2008 financial crisis and the developing countries and proposed that some developing countries were less affected and they had the possibility of recovering through the process of advancing (IMPROVING) their financial system.
The Global Financial Crisis also affected the real economy. Bank failures not only increased the unemployment rate but also affected the normal production of auto, steel and other U.S. economic pillar industries. Furceri and Zdzienicka (2011) described the effect on European economies was obvious and everlasting. Bran, et al (2011) pointed out that American financial crisis has exposed the drawbacks of liberal capitalism. After the crisis, the U.S. government strengthened macroeconomic regulation and control by took (TAKING) over a number of financial institutions and corporate entities. Besides, financial crisis shocked the international community’s confidence in dollar and the dollar hegemony suffered the second shake since the collapse of the Bretton Woods system the 1970s. Curran and Zignago (2011) found that the international financial crisis has affected international trade considerably. However, different countries and industries have suffered from different levels of influence. The electronics, base metals and machinery industries were deeply affected while some other industries did not decrease sharply in trade.
2 Financial crisis contagions
There are several experts focused on the way that financial crisis spreads from one country to another. These transduction ways can be broadly divided into three categories. In the reality of economic operation,