738N1 Institutions in the Global Financial Market Assignment - University of Sussex, UK

ASSESSMENT QUESTION - Financial crisis is often referred to a sudden fall in asset prices due to market liquidity evaporation. When it comes to financial crisis, there is one thing that we can be sure of: there will always be another one. Although it has been nearly 10 years since the worst of the last financial crisis, many systemic loopholes exposed seem to have not been effectively dealt with. For example, the European banks still struggle with bad loan and inadequate capital; the too big to fail US banks are even bigger; the Federal Reserve are raising interest rate while the global economy is still weak; and the governments are imposing unnecessary political risk to the financial market. The International Monetary Fund (IMF) has recently warned that the world economy is at risk of anther financial meltdown.

What will cause the next financial crisis? Please choose ONE cause that are most likely to trigger the next financial crisis and discuss it with specific reference to your knowledge of institutions in the global financial market.

GUIDELINE - Your essay should clearly demonstrate analytical, critical and evaluative skills and address your chosen cause.

Evidence is expected of a wide background of reading and research, without which above average grades are unlikely. All references should be acknowledged (see Library handout on reference styles - Harvard approach is strongly recommended).

In summary, this essay should:

1. Examine in depth the chosen cause of financial crisis.

2. Find both theoretical and empirical supports to your arguments.

3. Offer suggestions on future resolutions to the chosen cause/problem.

WORD INDICATION - The essay should be typed on A4 paper, Times New Roman, 12 point font, aligning text to both left and right margins, double spacing and should be no more than 2,000 words, excluding the reference page(s), bibliography and appendices (if applicable).