Basiccharacteristics
Thesharpdeteriorationofallormostofthefinancialindicatorsinthefinancialsectorhasaffectedthestabilityanddevelopmentoftheeconomyofrelevantcountriesorregionsandeventheworld.
Themainperformancesare:
1.Thestockmarketplummeted.Itisoneofthemainsignsoftheinternationalfinancialcrisis.
2.Capitalflight.Itisanothermajorsignoftheinternationalfinancialcrisis.
3.Normalbankcreditrelationshavebeendestroyed,accompaniedbytheemergenceofbankruns,shortagesofmoney,andalargenumberofbankruptciesoffinancialinstitutions.
4.Theofficialreservesaregreatlyreduced,thecurrencydepreciatessignificantlyandinflation.
5.Difficultiesinrepayingdebts.
Crisischaracteristics
First,theeconomyhascontinuedtogrowatahighlevelformanyyears;
Second,isthelargeinflowofexternalfunds;
Three,yesDomesticcreditisgrowingrapidly;
Four,itisageneralover-investment;
Five,thepriceofstocks,realestateandotherassetsarerisingrapidly;
Six,itistradeThedeficitcontinuesandcontinuestodeteriorate;
Seven,currenciesaregenerallyovervalued.
Origin
Theglobalfinancialcrisisbeganinthe19thcentury.In1873,theGermanandAustrianeconomiesprospered,attractingcapitaltostayinChina,andthesuddensuspensionofexternalcredit,leadingtothesuddensuspensionofAmerican·TheoperatingdifficultiesofCookCompanyappeared.
TaketheU.S.subprimemortgagecrisisthatbeganin2007asanexampletointroducetheoriginoftheglobalfinancialcrisis:
TheU.S.subprimemortgagecrisisthatoccurredin2007developedintoafull-scalefinancialcrisis.Therealeconomyhaspenetratedandspreadtotheworld,whichhasaseriousimpactontheworldeconomy.ButthesubprimemortgagecrisisaloneisnotenoughtocausesuchaseriousfinancialcrisisintheUnitedStates.TheUSfinancialcrisishasdeeperandbroaderroots,includingatleastthefollowingthreepoints:
TheInternetbubbleproblemhasnotbeenresolved.Inthe1990s,theUSITindustrywasbooming,drivingtheUSeconomytoprosperity,butitalsocontainedalotofbubbles.However,theUnitedStateshasnotresolvedthisproblem,andinsteadattemptedtocoveritupwiththeprosperityoftherealestateindustry.Sincethe21stcentury,theFederalReservehascontinuouslycutinterestrates,financialinstitutionshavesimplifiedhousingpurchaseprocedures,canissueloanswithoutdownpayment,andevenfalsifiedcreditratingstoencouragesubprimemortgages,whichhasledtoanincreasingrealestatebubble.TherealestatebubblehasmergedwiththeInternetbubblethathasnotbeenresolvedinthepast,andrisksinthefinancialmarkethaverapidlyaccumulated.
Thevirtualeconomyisseriouslyoutoftouchwiththerealeconomy.Thedualityofcommodityusevalueandvalue,thedualityofphysicalformandvalueform,dividethenationaleconomyintotwoparts:realeconomyandvirtualeconomy.Thetwopartsshouldberoughlythesame,butbecausethevalueofthecommodityisdifferentfromtheusevalueinoperatingchannels,trajectories,methods,regulatoryagencies,andoperatingentities,thevalueoftendeviatesfromtheusevalue,whichleadstoadisconnectbetweenthevirtualeconomyandtherealeconomy.Whenthisdivergencereachesaveryseriousdegree,severeinflation,hugefiscaldeficitsandforeigntradedeficitsarelikelytooccuruntilthefinancialcrisisandeconomiccrisis.OneoftherootcausesoftheoutbreakoftheUSfinancialcrisisisthatthevirtualeconomy(mainlyrepresentedbythefinancialindustry)isseverelyseparatedfromtherealeconomyandexcessivelyinflated.
TheUnitedStatesimplementsadeficitfiscalpolicy,ahigh-consumptionpolicy,andanexportcontrolpolicy.TheU.S.governmentreliesonfiscaldeficitsorborrowingtooperate.Americanhouseholdsalsorelyonborrowingtosupportadvancedconsumption.Householddebthasexceeded15trillionU.S.dollars.IntheUSindustrialstructure,capitalandtechnology-intensivehigh-techindustriesareadvantages,whilelabor-intensivedailynecessitiesindustriesaredisadvantages.ThisdeterminesthattheUnitedStatesmustimportlabor-intensiveproductsandexporthigh-techproducts.However,whiletheUnitedStatesimportsalargenumberoflabor-intensiveproducts,itstrictlyrestrictstheexportofhigh-techproductswithexportcontrolpolicies.Thishasledtoserioustradeimbalancesandagrowingtradedeficit.Howtosolvetheproblemoffiscalandtradedeficits?ItdependsontheglobalissuanceofUSdollars,Treasurybonds,stocksandalargenumberoffinancialderivatives.Throughsuchvirtualchannels,theworld'sphysicalresources(naturalresources,laborresources,andcapitalresources)areconstantlyflowingintotheUnitedStates.TheUnitedStatesproducescurrency,andothercountriesproducegoods.However,itisunsustainableafterall.
Milestones
2007
February13U.S.mortgagerisksbegantosurfaceMortgagebusinessincreasedbyUS$1.8billioninbaddebtprovision.CountrywideFinancialCorp,thelargestsubprimemortgagecompanyintheUnitedStates,reducedlending.,S&Pfell2.04%,Nasdaqfell2.15%
April4thAftercuttinghalfofitsemployees,NewCenturyFinancialfiledforbankruptcyprotection
OnJuly10thS&Ploweredtheratingofsubprimemortgagebonds,theglobalfinancialmarketfluctuated.
July19BearStearns'hedgefundswereonthevergeofcollapse
August5thWarrenSpector,presidentofBearStearns,thefifthlargestinvestmentbankintheUnitedStates,resigns
August6thb>AmericanHomeMortgage,arealestateinvestmenttrustcompany,filedforbankruptcyprotection
August9th
August10Thesubprimedebtcrisisspread,andtheEuropeanCentralBankintervened
August11CentralbanksaroundtheworldinjectedmorethanUS$326.2billionin48hourstorescuethemarket.TheFederalReserveinjectedUS$38billionintobanksthreetimesaday.Stabilizethestockmarket
August14ThethreemajorcentralbanksintheUnitedStates,EuropeandJapanonceagaininjectmorethan72billionUSdollarstorescuetheAsia-Pacificcentralbankandtheninjectcapitalintothebankingsystemofvariouseconomiesorpostponeinterestratehikesp>
August14DozensofcompaniesincludingWal-MartandHomeDepotannouncedthattheyhadsufferedhugelossesduetothesubprimedebtcrisis.USstockssoonfelltotheirlowsinseveralmonths.
August16thTheU.S.’slargestcommercialmortgagecompany’ssharepriceplummeted,facingbankruptcy,theU.S.subprimedebtcrisisworsened,andAsia-Pacificstockmarketssufferedtheirworstdeclinesince9/11.
AugustOnthe17ththeFedloweredthewindowdiscountrateby50basispointsto5.75%
August20theBankofJapaninjectsanother1trillionyenintothebankingsystem.TheEuropeanCentralBankplanstoStepupeffortstorescuethemarket
August21TheBankofJapaninjects800billionyenintothebankingsystemandtheReserveBankofAustraliainjects3.57billionAustraliandollarsintothefinancialsystem
August22ndTheFedinjectedanotherUS$3.75billionintothefinancialsystem.TheEuropeanCentralBankadded40billioneurostorefinancingoperations.
August23Banklends314millionpoundstorespondtothecrisis,theFedinjectsanother7billionUSdollarsintothefinancialsystem
August28TheFederalReserveinjectsanotherUS$9.5billionintothefinancialsystem
August29TheFederalReserveinjectsanotherUS$5.25billionintothefinancialsystem
p>August30TheFedwillinjectanotherUS$10billionintothefinancialsystem
August31BernankesaidtheFedwillworkhardAvoidingthecreditcrisisfromdamagingeconomicdevelopmentBushpromisedthatthegovernmentwilladoptapackageplantorescuethesubprimemortgagecrisis
September18TheFederalReserveloweredthefederalfundsrateby50basispointsto4.75%ThedebtcrisisaffectedtheBritishNorthRockBank,whichwasrunontobesplitandsoldDayTheBankofEnglandannounceda25basispointcutininterestrates.Bushannouncedasubprimemortgagereliefplan.
December12TheFederalReserveannounceda25basispointcutininterestratesandloweredthediscountrateto4.75%
December13TheU.S.andEuropeanCentralBanksjoinedforcestorespondtothecreditcrisis
2008
January15Citiannouncedthatthebanklost9.83billionU.S.dollarsinthefourthquarterandsaiditwouldraise12.5billionU.S.dollarsthroughpublicofferingsandprivateplacements.
January17MerrillLynchlost9.83billionU.S.dollarsinthefourthquarter,alossof12.01U.S.dollarspersharefromayear-on-yeargainof241million.
January22TheFederalReserveannouncedthatitwillcutthefederalfundsrateby75basispointsto3.50%andtheovernightlendingrateby75basispointsto4.00%
OnJanuary30th,SwissBankannouncedthatitisexpectedtosufferalossofapproximatelyUS$11.4billioninthefourthquarterof2007,draggeddownbythesubprimemortgageassetoffsetofuptoUS$14billion.
January31TheFederalReserveloweredthefederalfundsrateby50basispointsto3.0%andthediscountrateby0.5%to3.5%.
March12TheFederalReserveannouncedthatitwillexpanditssecuritieslendingprogram,lendingupto$200billioninTreasurybondstoitsprimarydealers.
March16TheFederalReservedecidedtolowerthediscountratefrom3.5%to3.25%andcreateanewdiscountwindowfinancingtoolforjuniortraders.
September7TheFederalHousingFinanceAdministrationwilltakeoverFannieMaeandFreddieMac
September14b>BankofAmericaandMerrillLynch,thethirdlargestinvestmentbankintheUnitedStates,havereachedanagreementonthe14thtoacquirethelatterforapproximatelyUS$44billion.
September15LehmanapplicationThelargestbankruptcyprotectiondebtinU.S.historyexceedsUS$613billion,Thepriceisonly30%ofthepeakvalueofMerrillLynch’sstockprice.
September17LessthantwodaysafterLehmanBrothersfiledforbankruptcyprotection,theFederalReservesetaprecedentbyannouncingaUS$85billionemergencyloantothethreateningAmericanInternationalGroup(AIG).Takeoverthegroupindisguise.
September18ThesixcentralbanksheadedbytheFederalReserveonceagainjoinedforcesandannouncedajointinjectionofupto180billionU.S.dollarsintothefinancialsystemtoeasethetightnessofthemoneymarket.
September21ThelasttwoofthefivemajorindependentinvestmentbanksonWallStreethavechangedtheircourse–MorganStanleyandGoldmanSachshavebeenapprovedtobecomebankholdingcompaniesandaccepttheFederalReserveSupervision.
September24TheFederalBureauofInvestigation(FBI)launchedaloanfraudinvestigationintocompaniessuchasLiangfangandLehman.
September25thJPMorganChase&Co.,thethirdlargestbankintheUnitedStates,acquiredthetroubledUnitedStates’largestdepositandlendinginstitutionWashingtonMutualBankfor$1.9billion.
September30thU.S.stocksexperiencedaBlackMonday,theDowfell6.98%,settingthelargestpointdropinhistoryandthelargestone-daydropsincethe"911"incidentin2001.
October8TheFederalReserve,EuropeanCentralBank,BankofEngland,etc.cutinterestratesby50basispoints;Chinacutinterestratesby27basispointsandsuspendedinteresttaxes.
October13Japan'sYamatoLifeInsuranceCompanyappliedtothecourtforcreditorprotection,becomingJapan'sfirstfinancialinstitutiontogobankruptduringthefinancialcrisis.
November8TheG20FinanceMinistersandCentralBankGovernors2008AnnualMeeting9openedinSaoPaulo,Brazil.Theparticipantsagreedthatthereisaneedtoreformtheinternationalfinancialsystem.Takejointactiontodealwiththeglobalfinancialcrisis.
December29Asthefinancialcrisisdeepens,forthefirsttimeinhumanhistoryin2009,asmanyas1billionpeoplewillgohungryduetofoodshortages.
December30Undertheimpactofthefinancialcrisis,export-orientedJapanesecompaniessufferedaheavyblow.Bytheendof2009,Japan’sautomobilemanufacturingindustryalone100,000employeeswillbefired.
In2009
January7TheU.S.governmentofficiallyprovidedCitigroupwithaUS$20billionemergencyloan
1Onthe19thBritishPrimeMinisterBrownonceagainannouncedthelaunchofalarge-scalefinancialrescueplanonthe19thtopromotebankloans.
January24Microsoft’ssecond-quarternetprofitfell11%andplanstolayoff5,000employees.
January27OctobersalesintheU.S.automarketfellby32%comparedtothesameperiodin2007,whichistheworstlevelintheU.S.automarketsince1991.
February4thThenewUSPresidentBarackObamaactivelyurgedtheUSSenatetopassaneweconomicstimuluspackagetotalingUS$819billiontosavetheUSeconomy.
February5Hitachipredictsthatthelossinfiscalyear2008mayreach700billionyen(equivalenttoUSD7.8billion),whichistheemergenceofAsiancompaniessincetheoutbreakofthesubprimemortgagecrisisintheUnitedStatesMaximumannualloss.
February6thToyotaJapanannouncedthatitwillhaveitsfirstannualnetlossindecades,andthecompany’sperformancewillchangefromtheoriginallyestimatednetprofitof50billionyento350billiondaysYuannetloss.
February10thUBSGroupreleaseditsquarterlyreport,showingthatthegrouphadalossofapproximatelyUS$6.9billioninthequarter,mainlyduetothelossofinvestmentbankingriskpositionsandannuallosses.US$17billion
February11CreditSuisselost6.02billionSwissfrancsinthefourthquarterandplanstolayoff5,200employees
February12TheU.S.Chamberandthetwochambersreachedacompromise,andthefinaltextofthenewgovernment’seconomicstimuluspackagewithatotalvalueof$798billionwasformed
February15Japan’sGDPcontractedby12.7%,adropofmorethanItispredictedthatitwillbetheworstsincetheoilcrisisin1974.
February19TheUSeconomicstimulusplanwithascaleof787billionUSdollarshasfinallysettled.ThisistheUnitedStatessince"ThemostmassivestimuluspackagesincetheGreatDepression
February24Theeconomiccrisis’simpactonEasternEuropeancountriessuchasHungaryandPolandhasdeepened.EasternEuropeancountriesmayconsidernotrepayingtheirdebts,andthe"secondwave"offinancialcrisisconcernsspread
February27TheUSgovernmentreachedanequityswapagreementwithCiti,andtheUSgovernmentisinCitiTheshareholdingratioofRBSwillriseto36%.Onthesameday,theRoyalBankofScotland(RBS)announcedahugelossof24.1billionpoundsinthe2008fiscalyear,andtheBritishgovernmentguaranteed325billionassets.
March2AIG’sfourth-quarterfinancialreportshowedthatitlostahugelossofUS$61.7billioninthequarter,settingthelargestsingle-quarterlossinthehistoryofaUScompany.Equivalenttoalossof$22.95pershare.
March6TheBankofEnglandandtheEuropeanCentralBankhavesuccessivelyloweredtheirbenchmarkinterestratesby50basispoints,to0.5%and1.5%respectively,andtheirrespectivebenchmarkinterestrateshavefallentotheirhistoricallowslevel.
March9Russiahasexhausted35%ofitsforeignexchangereservesinthepastfivemonths,GDPfellby8.8%year-on-yearinasinglemonth,andindustrialproductionoutputfellby16%year-on-year,hitting15Thebiggestdropinayear.
March11CitiannouncedthatitachievedaprofitofUS$19billioninJanuaryandFebruary2009,almostreachingtheprofitofUS$21billioninthefirstthreemonthsof2008.TheDowsoaredby5.8%,thelargestincreasein2009Onthethirdtradingday,itrosebymorethan600points.
Impact
Theoccurrenceoftheglobalfinancialcrisishasseverelyaffectedtheworldeconomyandseriouslyaffectedtheorderofpeople’sdailylives.
TakethesubprimemortgagecrisisintheUnitedStatesasanexample.Fromtheperspectiveofitsdirectimpact,thefirsttobeimpactedaremanyhomebuyerswithlowincomes.Duetotheinabilitytorepaytheloan,theywillfacethedifficultsituationofhousingbeingrecoveredbythebank.Secondly,inthefuture,moresubprimemortgagelendinginstitutionswillsufferseverelossesduetothefailuretocollectloans,andwillevenbeforcedtoapplyforbankruptcyprotection.Finally,asmanyinvestmentfundsintheUnitedStatesandEuropebuyalargenumberofsecuritiesinvestmentproductsderivedfromsubprimemortgages,theywillalsobehithard.
IntheU.S.subprimemortgagecrisis,thebankingindustryisthefirsttobehit.PayingattentiontothehiddenrisksbehindhousingmortgageloansisacurrentissuethatChinesecommercialbanksshouldpayspecialattentionto.Intheperiodwhentherealestatemarketisgenerallyrising,housingmortgageloansarehigh-qualityassetsforcommercialbanks,withrelativelyhighloanyieldsandlowdefaultrates.Oncedefaultsoccur,theycanbecompensatedbyauctioningmortgagedrealestate.Atpresent,realestatemortgageloansaccountforalargeproportionoftheassetsofChinesecommercialbanks,andtheyarealsooneofthemainsourcesofloanincome.AccordingtotheNewBaselCapitalAccord,theriskprovisionsofcommercialbanksforrealestatemortgageloansarerelativelylow.However,oncetherealestatemarketpricesgenerallyfallandmortgageinterestratesrisesimultaneously,thedefaultrateofbuyers'repaymentwillrisesharply,andthevalueoftherealestateafterauctionmaybelowerthanthetotalprincipalandinterestoreventheprincipalofthemortgage,whichwillleadtocommercialbanks.ThebaddebtratioofChinahasincreasedsignificantly,whichhasanimpactontheprofitabilityandcapitaladequacyratioofcommercialbanks.AlthoughitisunlikelythatpriceswillgenerallyfallintheChineserealestatemarketinthenearterm,inthelongrun,theriskofmortgageloanissuanceinthebankingsystemcannotbeignored.Strictloanconditionsandloanreviewsystemsmustbeimplementedatthisstage.
Atthesametime,thesubprimemortgagecrisishasalsohadagreatimpactonChina'seconomy.
First,thesubprimemortgagecrisismainlyaffectsChina’sexports.
ThesubprimemortgagecrisishascausedaslowdownintheU.S.economyandglobaleconomicgrowth.TheimpactontheChineseeconomycannotbeignored,andthemostimportantoneistheimpactonexports.In2007,duetoweakimportdemandintheUnitedStatesandEurope,mycountry'smonthlyexportgrowthratehasdroppedfrom51.6%inFebruary2007to21.7%inDecember.TheUSsubprimemortgagecrisishascausedadeclineinmycountry’sexportgrowth.Ontheonehand,itwillcausemycountry’seconomicgrowthtoslowdowntoacertainextent.Atthesametime,duetotheslowdownofmycountry’seconomicgrowth,thedemandforlaborislessthanthesupplyoflabor,whichwillputpressureontheemploymentoftheentiresociety.Increase.
Secondly,mycountrywillfacethedualpressureofslowingeconomicgrowthandsevereemploymentsituation.
Therealeconomy,especiallytheindustry,isfacingtremendouspressure.Theclosureofalargenumberofsmallandmedium-sizedprocessingenterpriseshasalsoexacerbatedthegrimsituationofunemployment.
Finally,thesubprimemortgagecrisiswillincreaseChina’sexchangerateriskandcapitalmarketrisk.
Inresponsetothenegativeimpactofthesubprimemortgagecrisis,theUnitedStateshasadoptedaloosemonetarypolicyandaweakUSdollarexchangeratepolicy.ThesharpdepreciationoftheUSdollarhasbroughthugeexchangerateriskstoChina.Withtheeconomicslowdownindevelopedcountries,thecontinuedgrowthoftheChineseeconomy,thecontinueddepreciationoftheU.S.dollarandtheexpectedappreciationoftherenminbi,theacceleratedflowofinternationalcapitaltomycountryinsearchofasafehavenwillintensifyrisksintheChinesecapitalmarket.
Relatedevents
Afterenteringtheindustrialage,economicandfinancialcriseshavealwaysbeenaccompaniedbyintermittentoutbreaksofhumaneconomicdevelopment.Sincethe20thcentury,majoreconomiccrisesandfinancialcrisesthathaveoccurredaroundtheworldmainlyinclude:
1929to1939:TheGreatDepression
TheWallStreetstockmarketcrashedintheUnitedStates,andadevastatingeconomicdepressionsweptalmostallindustrializedcountriesandlastedfortenyearsinsomecountries.DuringtheGreatDepression,thehighestunemploymentrateintheUnitedStatesreached25%,andtheunemploymentratesinGermany,Australia,andCanadawereoncecloseto30%.TheU.S.economyhitatroughin1933,andindustrialoutputfellto65%ofitspre-recessionlevel.
1973-1975:Economiccrisistriggeredbytheoilcrisis
InOctober1973,thefourthMiddleEastwarbrokeout.InordertocombatIsraelanditssupporters,theOrganizationofArabPetroleumExportingCountriesannouncedanoilembargoontheUnitedStatesandothercountries,andatthesametimejoinedotheroil-producingcountriestoincreaseoilprices,whichledtotheoutbreakoftheoilcrisis.ThiscrisistriggeredtheworsteconomiccrisissinceWorldWarIIinmajorindustrialcountries.IndustrialproductionintheUnitedStatesfellby14%,andindustrialproductioninJapanfellbymorethan20%.
The1980s:LatinAmericadebtcrisis
Sincethe1960s,LatinAmericancountrieshaveaggressivelyincreasedtheirforeigndebttodevelopdomesticindustries.Thetotalamountofforeigndebtwasinthe1980s.Atthebeginning,itexceeded300billionU.S.dollars.In1982,Mexicodeclareditsinabilitytorepayitsforeigndebts,triggeringa"debtcrisis"thatshooktheworld.ThedebtproblemhasseverelyhinderedtheeconomicdevelopmentofLatinAmerica.In1988,thepercapitaGDPofLatinAmericancountrieswasonlyUS$1,800,returningtothelevelofthe1970s.
1990sEss:Japan’sbubbleeconomycollapsed
In1990,Japan’srealestateandstockmarketscontinuedforseveralyearsAftertheexcessivegrowth,acatastrophicdeclinebegan.Duetotheoverallshrinkingofassets,Japanhasexperiencedalongperiodofdeflationandeconomicrecessionin10years.Inthemid-1990s,Japan'seconomicgrowthstagnatedandentereda"zerogrowthstage."
1997-1998:AsianFinancialCrisis
UnderthebackgroundofrisinginterestratesintheU.S.andappreciationoftheU.S.dollar,exportsfromAsiancountrieswhosecurrenciesarelinkedtotheU.S.dollarcontinuetodecline.InJuly1997,asThailandannouncedtheimplementationofafloatingexchangeratesystemfortheThaibaht,Asiancountriesgenerallyexperiencedcurrencydevaluationsandafinancialcrisisbrokeout.Inthiscrisis,Indonesia,Thailand,andSouthKoreaarethecountriesthathavesufferedthemost.TheGDPofthethreecountrieshasshrunkby83.4%,40%and34.2%respectivelyintwoyears.
2007-2011:U.S.SubprimeMortgageCrisisandGlobalFinancialCrisis
Foralongtime,U.S.financialinstitutionshaveblindlyissuedsub-credithomebuyersMortgage.Withrisinginterestratesandfallinghousingprices,thesubprimemortgagedefaultratecontinuedtorise,whicheventuallyledtotheoutbreakofthesubprimemortgagecrisisinthesummerof2007.Thecrisisledtothebankruptcyofcompaniesandinstitutionsthatoverinvestedinsubprimefinancialderivatives,andtriggeredseverecreditcrunchesworldwide.
TheU.S.subprimemortgagecrisisfinallytriggeredaglobalfinancialcrisis.InSeptember2008,thebankruptcyofLehmanBrothersandtheacquisitionofMerrillLynchmarkedthefulloutbreakofthefinancialcrisis.Asthedisasterofthevirtualeconomyspreadstotherealeconomy,theeconomicgrowthofcountriesaroundtheworldhassloweddown,theunemploymentratehassoared,andsomecountrieshavebeguntoexperiencesevereeconomicrecessions.
Relatedmeasures
Aftertheglobalfinancialcrisis,variouscountrieswilltakerelevantmeasurestopreventthespreadoftheincidentorminimizetheharm.
TaketheUSsubprimemortgagecrisisin2007asanexample.Aftertheoccurrence,theChinesegovernmentintroducedaseriesoffiscalandmonetarypoliciestoensurethestabledevelopmentoftheeconomy.
Fiscalpolicy:
(1)Loosefiscalpolicy:reducetaxation(thereductionofsecuritiestransactiontaxandtheabolitionofinteresttaxhavebeenimplemented),andexpandgovernmentexpenditure(drivenby40billionyuan)Domesticdemandisbeingimplemented);
(2)Promotingforeigntrade:Theimportandexportindustryisthefirsttobeaffected,andtherearemanyemployees(accordingtostatistics,ithasreached100millionpeople).Oneistoincreasetheexporttaxrebate;theotheristheappreciationoftherenminbi,whichisameanstoincreaseexportcompetitiveness;(3)reducetheburdenonenterprises:adjustmentoflaborlaws,etc.;
(4)Strengthenpublicfinancialexpendituresonsocialsecurity/medicalservices,andmaintainthestabilityofthesocialandeconomicdevelopmentenvironment.;
(5)Industrialrevitalizationplan.
Monetarypolicy
(1)ThemonetarypolicyhasbeenadjustedinatimelymannersinceJuly2008.Reducethehedgingeffortsintheopenmarket,successivelysuspendtheissuanceof3-yearcentralbankbills,reducethefrequencyofissuanceof1-yearand3-monthcentralbankbills,andguidecentralbankbillissuanceratestofallappropriatelytoensureliquiditysupply.
(2)Loosemonetarypolicy.InSeptember,October,November,andDecember,thebenchmarkinterestratewascontinuouslylowered,thedepositreserveratiowaslowered,thedepositreserveratiofell,andthebenchmarkloaninterestratefell.Thepurposewastoincreasethemoneysupplyinthemarketandexpandinvestmentandconsumption.
(3)OnOctober27,2008,a30%discountforthefirsthousingloaninterestratewasimplemented;residentsweresupportedtopurchaseordinaryself-ownedhousingandimprovedordinaryhousingforthefirsttime.
(4)Therestrictionsonthecreditplanningofcommercialbankshavebeenlifted.
(5)Insistondifferentiatedtreatment,withholdingsandpressures,andencouragefinancialinstitutionstoincreaseloansforreconstructionofdisaster-strickenareas,"agriculture,ruralareas,andsmallandmedium-sizedenterprises."
(6)Foreigneconomiccooperationandcoordination(suchascurrencyswapsbetweenChina,JapanandSouthKorea,etc.)
Reflection
1.GovernmentmarketRelationship:Supervisioncannotbeabsentfrom"financialinnovation"
Therealityhasprovedtherootcauseofthecrisis---theUnitedStates’oversightofthecrisis.
ThisoversightisreflectedinmanyOntheonehand,themostimportantthingistheweakeningofgovernmentsupervision,whichhasledtotheexcessiveexpansionofmarketpower,whichseemstohaveopenedPandora’sbox.Financialinnovationundertheabsenceofsupervisionhascloselylinkedtherealestatemarketwiththecapitalmarket,andhighleveragehasincreasedrisks.Expansion.Manyfinancialinnovationproductshavedevelopedtoapointwherealmostnoonecanunderstand.Finally,thereiscollusionbetweenratingagenciesandinvestmentbanks,thatis,acollusionbetweenmarketsupervisorsandproductcreatorsandsellers.
2.Internationalcooperationresponse:Itisimportantforgovernmentstoworktogether
Intermsofcrisisresponse,amajorlessonliesinthetimingandconsistencyofgovernmentresponse.ReviewtheUSgovernmentObjectivelyspeaking,manypolicieshaveshownresultsinresponsetothefinancialcrisis.Thefinancialmarkethasstabilized.AftertheNewYorkstockmarkethasreturnedtoitsupwardtrend,therealestatemarkethasimprovedandconsumerconfidencehasrecoveredsignificantly.
3.Short-termemergencymeasures:moreemphasisshouldbeplacedonthesustainabilityofdevelopment
AlanKrueger,ChiefEconomistandAssistantSecretaryforEconomicPolicyoftheUSTreasuryDepartmentInaninterviewwiththe"EconomicInformationDaily"reporter,hesaidthatreflectingonthelessons,thiscrisishasmadeAmericansrealizethatthepastfoodandexcessivedebtconsumptionareunsustainableandwillreduceimportsandincreaseexports.Inaddition,theUnitedStateshasrealizeditsownfinancialsector.Inordertolaythefoundationforfuturedevelopment,large-scalefinancialreformsarebeingadopted,includingstructuraladjustments,strengtheningconsumerfinancialprotection,andrestrictingspeculationinfinancialderivatives.Countriesaroundtheworldareactivelylookingforstrategiesforsustainabledevelopmentafterthecrisis.LookingatthesourceofthecrisisintheUnitedStates,ontheonehand,theU.S.governmenthasimplementedfinancialreformsandstimulatedeconomicgrowthathome,ontheotherhand,ithaspromotedtherebalancingoftheworldeconomyinternationally.