The Subprime Mortgage Crisis: Analysis Based On The Angle Of Economic Globalization

It is necessary to consider the background of economic globalization to analyze the causes of the Sub-prime Crisis. Combined the irreversible economic globalization process, we can draw the conclusion that the crisis was just an important manifestation of economic imbalance in the background of economic globalization, and economic imbalance is unsustainable and should be changed.For further study, we could find that the reason of global economic imbalances should also consider the background of economic globalization. The inherent defects in current international monetary system together with growth model of the major economies and other factors led to the economic imbalances in the background of globalization.Therefore, the paper tries to analyze the cause of sub-loan crisis base on the above logic. The paper consists of following main parts: the first part introduces basic concept of the sub-loan crisis and economic globalization; Then, the paper goes on to analyze global economic imbalance-the root cause of the crisis, and the reasons for global economic imbalance: the inherent defects in international monetary system and the systemic risks as well as the irrational, unsustainable pattern of current global economic growth model; Finally, the paper gives out relevant suggestions on reforming the existing international monetary system.