Cause, effect and lessons learnt from the asian financial crises Research Paper

Cause, effect and lessons learnt from the asian financial crises - Research Paper Example In addition, the crisis brought doubts on the International Monetary Fund’s (IMF) approach in its efforts to dealing with financial imbalances within the private financial markets. It is also clear that the financial crisis can be attributed to panic of local and foreign investors and its role in enhancing the situation (Noble and Ravenhill 2). The Asian economies were at the height of success due to their fast growth and immense gains on the living standards their populations enjoyed. They were basically experiencing sensible fiscal polies and even high rates in private saving which was enticing to the world. There was no prediction that these countries would ultimately fall suddenly into a deep financial crisis in the post war era. Many questions were raised by economists on the causes of the crisis and whether or not they became victims of their own accomplishment. The abundance success may be one of the reasons that also led to their down fall but it also shows that struct ural and policy misrepresentations among the countries in this region played a role in the crisis. The 1997 financial crisis is therefore, a combination of many factors including market over response, which led to a drop in exchange rates, property prices, and economic stability (Noble and Ravenhill 2). Causes of the Asian Financial Crisis The financial crisis in East Asian countries began immediately after the huge high savings and vigorous growth they enjoyed. Since the 1980s, this fast growth was followed by high increment in asset values, increasing property and stock prices, and even in some instances a growth in temporary borrowing from oversees. In the mid-1990s, a tremendous emergence of external shocks specifically the devaluation of major currencies largely impacted export returns. This meant a decline in economic growth as property prices increased in most Asian economies. The devaluation of the currencies begun in Thailand after the decline of the Thai Bhat and this made investors to lose confidence in the Asian markets. The events in Thailand forced many investors to reassess their lending and evaluate the robustness of the region’s currency. This led to a huge wave of currency depreciations while stock, asset and market fell starting with Southeast Asian and then followed closely by the entire region. The year that followed the devaluation of the currency, most of the affected currencies fell as low as 35% to 83% against the United States dollar. There were even records of serious fallout as big as 40% to 60% decline against the U.S. dollar and the Asian financial crisis became a reality (Noble and Ravenhill 2). In Southeast Asia, there was record of capital inflows in the major East Asian upcoming economies that grew from 150 billion U.S dollars in the 1980s to 320 billion U.S dollars in the early 1990s. Private companies were doing excessive borrowing form the foreign capital economies mostly for short-term needs instead of looking for l ong-term earnings for productive security. The main capital inflows were meant for bank loans and even direct immediate foreign investments (Matsumoto 4). The huge capital flows resulted in increase in prices especially for non-tradable goods while the abundant foreign investment caused the currency to appreciate but decreased

Knapps Relational Development in the Movie No Strings Attached Essay

Knapps Relational Development in the Movie No Strings Attached - Essay Example This essay discusses that according to Knapp, Initiating as the first stage of the relationship begins with the simple introduction between two individuals. Between Adam and Emma, their relationship began at a summer camp when they were young teenagers. Their body language apparently shows that it was an awkward meeting, especially with the way their small talk has progressed. Seeing each other again after five years in a fraternity party when they were university students was made led to what Knapp calls the Experimenting stage in a relationship. When Emma invited Adam to her father’s funeral, it became obvious in the movie that she is not comfortable talking about situations concerning emotions. Calling her father’s funeral â€Å"this thing† shows that it is her way of coping with the loss of a member of her family. Although Emma did not express her feelings and beliefs about the situation and certain issues to Adam, her gestures simply speak of her opening up herself and sharing her beliefs with him. Bringing someone to an event where he or she meets the family is a step further to making closer and letting them know that you are no longer just an acquaintance. A father’s funeral is rather a very emotional and personal event that is supposed to be shared only to people who we know well and we are familiar with, physically and emotionally. In addition, the mere introduction of Adam to her family made Emma open up a part of her life to Adam, which makes their relationship move further to Knapp’s second phase of relational development.... m to her family made Emma open up a part of her life to Adam, which makes their relationship move further to Knapp’s second phase of relational development. It took Adam and Emma a few more years to see each other again and continue where they left off. After running into each other in a farmer’s market in Los Angeles, they exchanged contact numbers and promised to keep in touch. However, it was only after Adam’s desperation after finding out his father is living with his ex-girlfriend that they were able to get together again. Adam, having exposed his vulnerability to Emma when he passed out and slept over at her apartment, became comfortable talking with her. After a short conversation and a few laughs, they made out right before Emma went to work. When Emma seemed to be ignoring his messages and calls, Adam surprised her at the hospital with a heart-shaped balloon hoping she would be impressed by the gesture and probably for them to become a couple considering what just happened the morning before. To his surprise, Emma was â€Å"not the type who is good at relationships.† When they saw each other again and had sex the second time at Adam’s place, Emma proposed an agreement to Adam for which he thought he could â€Å"handle.† The Intensifying stage of their relationship began at this point as they have agreed to â€Å"use each other for sex† since Emma thought it would be better for them so they would not have to have breakfast together when they wake up. Having breakfast is in fact a common gesture for couples who are in a real relationship, and it is usually at breakfast when couples get to talk about each other and makes plans. Obviously, this situation is what Emma wanted to avoid. She does not feel comfortable feeling vulnerable and needy of a man next to