Irfan Ahmed, PhD

Global Financial Crisis w   Deep and long global economic recession looms for all countries with high unemployment, shrinking tax receipts, lower exports and trade, gyration in value of currencies, decreasing tourism income, reduced consumption levels - and the specter of depression w   Oil prices are in a steep fall, affecting the income of many oil-producing (developing) countries. w   All these pressures reduce the ability of governments in industrialized and developing countries alike to steer their economies; budget deficits are rising. w   Governments are forced to prune their budgets so as to reach as balanced a budget as possible, especially if they require IMF standby credits w   Moral hazard: Need for more equity in policy-making and allocation of public funds w   The global financial crisis has spread like wildfire across the world because one single model of globalization, i.e. liberalizing market economy without regard to diversity, different...

Following is the lecture on Global Financial Markets. This is the over all introductory lecture which highlights the main areas of the Global Financial Market subject. Details of every topic will be posted one by one later. GLOBAL FINANCIAL MARKETS (GFM) The markets where economic units with surplus funds, such as corporations, governments and investors lend funds to other economic units that want to borrow. —   There are following financial markets: —   Foreign exchange market —   Eurocurrency market —   Eurocredit market —   Eurobond market —   International stock markets —   International development Institutions Motives for Using GFM —   The markets for real or financial assets prevented from complete integration by barriers such as tax differentials, tariffs, quotas, labor immobility, communication costs, cultural differences, and financial reporting differences. —   These barriers can also create unique opportunities for specific...