Year of Graduation
Monetary policy in a liberalized financial markets
AbstractNowadays many countries get a huge amount of foreign capital and is necessary to use this capital properly. The number of countries emerging from recessions because of liberalization of their economic system rise dramatically. Experts must understand how to solve these problems quickly. In this paper monetary policy in the context of liberalization of financial markets could be found. To understand how to avoid future crises, experts, heads of central banks, in particular, need to analyze the results of previous crises.For the analysis of macroeconomic problems an example of the Asian crisis of 1997 had been used.The object of this study is to monetary policy during the crisis. The Subject of research is the Asian monetary policy during the crisis. The main objective of this study is to understand how to avoid future crises like the Asian in 1997.The first part of the analysis is literature review written of the crisis in 1997 and the study of double crises. In the second part own research was created , regression analysis and financial analysis of one of the banks was written. The third section summarizes the research conclusions according to the correct economic policy.Empirical base was such countries as South Korea, Malaysia and the Philippines. For regression analysis were chosen 12 months of 1998 , when the Asian countries have begun to take steps to resolve the crisis . The result will help to understand what the central banks need to focus when the crisis happens. Data were taken from the site of the IMF (imf.org).For a more detailed analysis of the crisis it is necessary to conduct a financial analysis of a financial structure during the Asian crisis of 1997.As an example that demonstrates how the situation in 1997-1998 ( when the measures to overcome the crisis has already begun ) affects the financial structure was taken DBS bank, as an empirical base, which in those years was a regional financial center of Singapore.To conclude, according to the results of the regression analysis , we can conclude that if there would be a crisis in 2020 ( in Libya or Algeria for instance ) , similar to the one that was in 1997 in Southeast Asia , central banks will have to pay attention to the exchange rate and interest rate , to solve this problem as soon as possible . Interest rates must be reduced, and the exchange rates should be increased.In the context of financial analysis it could be mentioned that DBS bank inefficient use its available resources , managers do not work very smoothly. It follows from the indicators. The analysis showed that the large banks short-term loans is rather high (as well as loans of many corporations and banks), and must be reduced.