International capital movements can bring major gains both to the lending or investing countries and to the borrowing countries, through intertemporal trade and through portfolio diversification for the lenders/investors. But international lending and borrowing is not always well-behaved, financial crises are recurrent.

          Develop a detail paper (at least 6 pages with a minimum of 5 cited references in APA 6^th edition format) analyzing the empirical reasons for the international financial crisis and the role of the International Monetary Fund. Your paper should be APA format and structured as follows

• Cover page with a running head

• Introduction
• International capital flows
• The International Monetary Fund
  • International Lending and borrowing between industrialized countries
  • International Lending by industrialized countries to developing nations
• Reasons behind International Financial Crisis
  
  1. Overlending and Overborrowing: The Asian Crisis of 1997
  2. Exogenous Shocks
  3. Exchange Rate Risk
  4. Large Increases in Short-Term Debt to Foreigners
  5. Contagion

• Resolving the Crisis
  • Rescue Package
  • Debt Restructuring
• Conclusions
• References