Q. You have been tasked to brief firm's finance team on an aspect of international finance and n to lead a discussion with team.
This briefing is particularly important because of global financial crisis that began in 2007.
briefing is needed to provide more foundation for finance team because they are not well versed in international aspects of finance.
Provide a briefing that addresses following:
Describe when and why central banks buy either their own currency or currency of another nation in an effort to control exchange rates.
What did central banks do to stabilize financial systems in 2007-2009?
In an effort to stabilize financial system how much money, in U.S. dollar equivalent and as a percentage of country's GDP, did European Central Bank, Bank of England, Bank of China and Federal Reserve put into economy in 2008 and 2009?
How well did each country's efforts work at stabilizing economy?
What appears to be major constraint that central banks used to determine limits of monetary injections into economy? Did United States use same or different criteria?
To what extent to do you agree/disagree with actions of central banks during this time?