Global Financial Stability Term Paper Example | Topics and Well Written Essays - 1000 words

Global Financial Stability - Term Paper Example Therefore, global financial stability entails smooth operations of the financial institutions and global markets in conjunction with the global economy. Therefore, to determine a global financial stability balance of payments would help in providing information of an interpedently economy. Balance of payments Balance of payments is records of all financial transactions that are made between businesses, the American government and the consumers with people across the rest of the world. The figure in balance of payments explains the amount being spent by the consumers of a particular country and firms on imported goods and services (Choi, 2009). It also entails the degree of success the firms in a particular nation in terms of exports to other countries and markets. This is an essential measure of the United States economic performance worldwide. Karmakar (2010) suggests that a balance of payments gives information about the economic interdependence of a particular economy with foreign countries. It records the value of all transactions among residents and foreign persons for a given duration. Exports and investments are recorded as positive or alternative surplus items while imports or other deployments of capital in foreign countries are registered as negative or deficit entries. These payments relate to the United States banking growth in that when there is a crisis on balance of payments it might result into a banking crisis overseas. This happens when the economic growth is below the normal status (Choi, 2009). Both crises are preceded by great recessions, hence, this is worsening to trade sector and an overestimated exchange price and the rising cost of credit. In addition, this will have a hard hit on the countries’ exports resulting into a financial shock to the financial institutions. The balance of payments statements are used by the United States banks to interpret information thus enhancing better performances since the information from the sta tements is used to make appropriate financial decisions that control the monetary policy of the country’s economy. Banks overseas have a financial account, where any charges in assets and liabilities are recognized as foreign assets (Stern, 2006). The two possible entries to this entail the export capital, which emerges to an increase in assets or reduction in the external liabilities. On the other hand, the United States capital imports point to decrease in receivables and increase in external liabilities. This would enhance bank growth overseas due to the presence of more liquid cash in overseas banks resulting into a more stable financial base thus enhancing activities such as loan borrowing with competent interest rates .This increases the growth and development of the financial institutions such as banks since there is sufficient capital for development. The main balance of payments of a bank is also a portion of the balance of capital transfers account. In this case, th e balance shows funding to a statistical adjust in the outstanding stock on net foreign assets (Choi, 2009). The balance of payments is considered as one of the major indicators of the United States level of economic growth and this has a positive influence in the banking industry overseas. Consequently, it has the potential to control the rates of free-floating currencies since

Inner City Violence Video Lecture Critique Coursework

Inner City Violence Video Lecture Critique - Coursework Example The speaker’s main point appears credible given that the evidence is in the miraculous outcomes that he gives. The theme is credible as it tries to combine social science, street reality, and moral urgency. However, the presentation seems exaggerated as the speaker either appeared too unreserved or got too far along the speech dismissing the beliefs of minorities that policing or drug policy is an economic scheme to reinstate slavery, prior to admitting that it is essentially justified (Kennedy, 2011). I agree with the speaker that there is a socially built illusion. This is justified by the way he mobilizes the traditions of the imposing escapade tale to illustrate what people should have already known. It is true that everyone who engaged in the city crime crisis shares a lot of character traits with each other than any other person involved shares with anyone else. I also agree that people in a community, such as cops, crime victims, shooters, and the families; all begin from one point in life. In fact, they are the same people caught up in extreme circumstances, rather than a permanently and radically different kind o individual as some might think. Despite the fact that I agree with the above issues as presented, I disagree with the speaker’s point that the urban communities with high rates of criminal cases have a breakdown within the three parts namely; the victims, the police, and the residents. According to him, the three have fake perceptions about each other, making them unable to deal with crime appropriately. This is not actually the case because every individual has a role to play as an element of society, and the failure to keep peace ought not to be a one-group’s role. Further, I disagree with his motive to show the reason as to why crime decreased during the 1990s because it fails to address some earlier theories that relate to his story (Harding, 2010). The presentation, and the book in general is a must