foreign exchange derivatives. The global falls in interest rates resulted in significant gaps between the fixed and floating legs of interest rate swaps. Widening credit spreads and increasing market volatility caused mark-to-market increases in the value of credit derivatives. After the crisis their percentage by 52% .Lower volatility within the financial markets, steepening yield curves in majo
financial crisis :
- Real estate values rose
High current deficits was risen simultaneously
in many countries
- Extraordinary levels of leverage used
The financial crisis were influenced by global imbalance :
Asians accumulated foreign reserves for better future (Saving Glut)
- Saving Glut influenced interests rate of developed countries to be low
Many methods of inve
Foreign affairs
Argentina, a major economic partner of Brazil, met the worst social and economic crisis on
December 20 2001, since the Great Depression. Three presidents are turned over in two weeks on
responsibility of financial crisis. During the last week of 2001, the interim government led by
Rodriguez Saa defaulted on the larger part of the public debt tot
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
I. Introduction
1. Luxury Market
In 2008, the Korean economy was greatly affected from the financial crisis of USA. As exports decreased and foreign trades deteriorated, corporation investments and productions decreased which led to downsizing. Furthermore, this led to lack of demand which deteriorated markets. This finally led to sales decrease which crumbled down companies leading to decrea