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MBA 6641- International Economics Assignment

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Columbia Southern University

   

International Economics (MBA 6641)

   

Added on  2020-05-11

MBA 6641- International Economics Assignment

   

Columbia Southern University

   

International Economics (MBA 6641)

   Added on 2020-05-11

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Running head: INTERNATIONAL ECONOMICS International EconomicsName of the StudentName of the UniversityAuthor Note
MBA 6641- International Economics Assignment_1
1INTERNATIONAL ECONOMICS ReferencesTable of ContentsAnswer 1:.........................................................................................................................................2Answer 2:.........................................................................................................................................2Answer 3:.........................................................................................................................................3Answer 4:.........................................................................................................................................3References........................................................................................................................................5
MBA 6641- International Economics Assignment_2
2INTERNATIONAL ECONOMICS ReferencesAnswer 1: The Great Depression of 1929, which is until now one of the most destructive economicphenomena was in existence for almost a decade, mainly had its origin in the USA. The mainpolicy blunder which the central bank of the country, the Federal Reserve did at that time wasthat it constantly kept on increasing the rate of interest in the country, even during the time ofrecession which started in August 1929. This in its turn led to a massive crash in the stockmarket in the last quarter of the same year (Berton, 2012). Another factor, which contributed tothe decision of the Federal Reserve of raising the rate of interest to preserve the value of thedollar was the Gold Standard which existed at that point of time. Answer 2: The Gold Standard, which prevailed in the global economy at the time when the GreatRecession struck the international economic scenario, was basically designed and implementedto maintain a stability in the foreign currency and exchange scenario. However, this standard alsohad its contribution in increasing the effects of the Great Depression. To maintain the GoldStandard and to prevent the gold outflows, the central banks all over the world preventedthemselves from taking any expansionary policies, which in its turn, in the period of GreatDepression and deflation, increased the financial crisis even more (Temin, 2016, pp. 144-153).
MBA 6641- International Economics Assignment_3

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