Financial Crisis Team Assessment
Financial Crisis Team Assessment

Analyze the financial crisis your team collected data on from two competing perspectives. Select two from below:

  1. Classical economic development theory
  2. Neoliberalism
  3. Dependency theory
  4. World-systems theory
  5. Participatory development

Components:

I. Introduction

  1. Outline the basics of the financial crisis: when, where, why important
  2. Identify two perspectives used, general orientation of each.
  3. Summary of any agreement and major points of difference.
  4. 10 points – evaluated on coherence of overview and description of two perspectives

 II. In essay form, describe the

  1. 1) Net capital inflows to the country, 2) government debt, 3) domestic credit to the private sector, 4) foreign exchange rates, 5) foreign reserves, and 6) inflation.
  2. Discuss changes in each around the financial crisis.
  3. 30 points – evaluated based on the use of data and clarity of presentation.

III. Discuss domestic and foreign factors that contributed to the financial crisis:

  1. Domestic examples: Possible issues: government spending, monetary/currency policy, regulation of banks, ties between state and business (for personal benefit or as industrial policy), domestic capital flight, political instability
  2. “Foreign” (external) examples: Contagion, Investor Confidence, Foreign Portfolio Investment, Large Investors, Transnational Banks, IMF policy, Trade Agreements
  3. 30 points – evaluated based on presentation of two perspectives and evidence to support each.

IV. Consequences for different stakeholders

  1. For investors in domestic economy, in government debt.
  2. For government (policy changes, political power, etc.)
  3. For citizens in terms of unemployment and poverty, public programs (education, health care)
  4. 30 points – evaluated based on presentation of two perspectives and evidence to support each.