A Study On Transmission Mechanisms Of International Financial Crises

While the American Subprime crisis,burst out in 2007,slows down the world's economic development,it also draws the world's attention on the financial crisis again. As long as the international financial crisis is the world's economic catastrophe,we should know it comprehensively and deeply in order to limit our damages and learn from what we are going through.We can start with the transmission mechanism of the financial crisis,through which we can get to know all phases of the financial crisis, including the latent phase,the eruption phase,the transmission phase and the recovering phase.The thesis focuses on the transmission mechanisms of the international financial crisis.Part one is the introduction which contains the importance of the subject,the methodology applied in the thesis,the literature summary and the innovations of the thesis.The following part is chapter one with the introduction of the financial crisis, including the definition,classification and models of the financial crisis.It also presents different transmission mechanisms of the financial crisis theoretically,such as the trade channels,the international capital flow channels and the contagious effects,providing the theoretical basis for the next part.Taking the American Subprime crisis as the sample,chapter two gives lots of figures and tables to illustrate different transmission mechanisms of U.S.Subprime crisis,and summarizes two features of the transmission mechanisms of U.S.Subprime crisis.Grounded on the theoretical and practical researches of the transmission mechanism of the Subprime crisis,the last part puts forward the risk prevention policies,and based on the Subprime crisis's impacts on China,the thesis advances three long-term and short-term policies and suggestions for the Chinese economy.They include increasing the the internal demand and adjusting the economic structure,increasing the RMB's elasticity,and stablizing the financial market.