1. Introduction
The Third Taiwan Strait Crisis refers to the escalation of military conflict that occurred between China and Taiwan from May 1995 to March 1996. China and Taiwan has been competing over sovereignty and security issues for more than half a century, and the conflict between them is one ofthe biggest threats to the stability of NortheastAsia. The Taiwan Strait Crisis is a good exa
the large current account deficits of developed economies such as the United States and the large surpluses of developing economies such as China and oil rich economies ofthe Middle East and Russia.
Causes ofthe Global Imbalances :
- Events in the United States : Saving-Investment Imbalances
- Events Outside the US :
Inadequate Investments and Excessive Savings in Asia
Several sign
1. Introduction
The International Monetary Fund (IMF) is no longer a purely international economic organizationin the way it was. At first, the IMF was established along with the World Bank and theGeneral Agreement on Tariffs and Tradeat the close ofWorld War II in order to provide governments with balance of payments support, but now there’s a doubt that IMF has become a political organizat
the on-lending ofthese yen funds to entities outside Japan.
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was b
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank as