Reasons Of Global Financial Crises And Suggestions For China's Policies

Followed by the trend of financial globalization which began from the 1970s, The relations and interactions of various financial elements are enhanced. but in the course of financial globalization, financial risks and crises are globalized. Sine the 1990s, the development of world economy is baffled because of financial crises. These financial crises , from financial crisis of Eurocurrency system resulted from depreciation of pound and lira from 1992 to 1993, to financial crisis of Latin America resulted from depreciation of piaster from 1994 to 1995, and to financial crisis of southeast Asia began from the depreciation of baht from 1997 to 1998, all had one common character: the crises appeared obvious infectivity, one country's financial crisis quickly diffused to other countries and areas and evolved into territorial or even global crisis. After the turbulences and adjustments at the end of 20 century, the world economy appears reviviscence and stability from the new century. Nevertheless, along with further enhancement and development of world economy's integrity, the relations of world economies and finances are more intensified, on the one hand, it brings about more opportunities for world economy's development, but on the other hand, it makes more uncertainties. At the back of prosperity, more risks are concealed in world economy which can bring about crises. So, all countries especially developing countries must keep more alert bout financial risks and prevent from financial crises. The aim of this thesis is to analyze the reasons which led to financial crises and the mechanism for crises'contagion, then puts forward suggestions to keep financial crisis away and preserve financial safety. This thesis consists of four chapters: conceptions and styles of financial crises are introduced in the first chapter; on the base of the analysis of modern financial crises, the second chapter expounds the reasons which led to financial crises and the mechanism for crises'contagion; by the material analysis of the financial crisis of southeast Asia, the third chapter elucidates the financial risks in developing countries and gains enlightenment for the lessons of this financial crisis; according to the risks that china's financial system are faced to and in relations of former analysis, the last chapter puts forward suggestions to keep financial risks away and preserve china's financial safety.