brief discussion of IMP and Lulopcu 6. (a) Be able to explain the typical path o

Question

brief discussion of IMP and Lulopcu 6. (a) Be able to explain the typical path of developing country currency/financial crises over the last three decades. According to The Economist Special Report, "Just in Case," Brazil adopted a tax on financial inflows in 2008 as its economy began growing again and international money started flowing in. Why? Explain in detail the typical role of the IMF in developing country currency/financial crises and why many countries wish to supplant theI changes they wish to implement? CIS SS2 What has been the

Explanation / Answer

A) Financial crises have been an unfortunate part of the industry since its beginnings. Bankers and financiers readily admit that in a business so large, so global and so complex, it is naive to think such events can ever be avoided. A look at a number of financial crises over the last 30 years suggests a high degree of commonality: excessive exuberance, poor regulatory oversight, dodgy accounting, herd mentalities and, in many cases, a sense of infallibility.  

Brazil grew as, the tax on financial inflow helped it's domestic economy and market to grow.

B) as the IMF lends to only it's member countries, most of which are already developed, developing countries aspire to get another organisations, which would be willing to invest in their area of initially lesser profit.

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