Research On Bailout Of Financial Crisis

Since the inception of the capitalist system, we never get rid of the financial crisis hit, from the tulip mania in Holland in1636to Subprime Crisis in2007due to excessive speculation in derivatives and the ensuing recession triggered (Great Recession), the related economies all have been severely disrupted. In the20th century, with the accelerated process of economic and financial globalization, the financial crisis is getting more frequent, extensive, persistent and destructive. The crisis seems to have become an integral part of the economic and financial operation, species of its own way. Based on this, we believe that the financial crisis is inevitable, but how to minimize the destruction and loss of the financial crisis? Faced with a series of financial crisis, should the government and the public sector provide assistance? If they should, how will the government and the public sector rescue? In the history of financial crises, did each rescue have something in common or any special characteristics? How the bailout of the financial crises? What defects did each rescue have when implementing the rescue plans? What are the implications of China? These issues are worthy of our in-depth analysis and reflection.The main idea is:First, we analyze the six large-scale financial crises in the20th century from the crisis background, aid policy measures and rescue outcomes of the sort. Secondly, we compare the most influential three financial crises in the history from multi-angle and all-round perspectives, concerning the causes of the crisis, relief measures comparison, feature comparison, the judgment of the relief measures and other content. Again, from an international perspective, we compare the major countries in the world financial crisis rescue mechanism in the full range analysis, including the United States, Japan and major European countries. At the same time, we take the IMF for example, analyze rescue content, features, rescue practice of international organizations and make suggestions for improvement. Finally, we focus on the rescue of the U.S. subprime mortgage crisis, including relief object, the main relief, the timing, rescue mode selection and the cost-benefit of rescue, fiscal aids and monetary policy co-ordination mechanism, international coordination mechanisms, rescue exit mechanism and expected management etc.This paper consists of seven chapters:Chapter1is an introduction, including the research background, significance, key concepts defined, research methods, thesis ideas and structure, innovation and shortcomings. It points out that the financial crisis rescue research has important theoretical and practical significance.Chapter2is the theory and literature review of the financial crisis assistance. It consists three parts of state intervention theory, major financial crisis theory and crisis relief literature review. The theoretical premise of financial crisis rescue concerns that government intervention in the economy is reasonable. Therefore, this chapter first sorts out the state intervention in economic theory, including government intervention theory of the classical economists, Keynes’s theory of state intervention, state intervention in the Post-Keynesian theory doctrine, state intervention in the evolution of government economic function in the economy and state intervention in economic theory. Secondly, for easily sorting out the full context, the article introduces briefly the major financial crisis theories, including the first-generation financial crisis theory, second-generation financial crisis theory and the third-generation financial crisis theory. Again, we review the relevant literatures in recent years concerning the financial crisis bailout.Chapter3is the review of financial crises rescue. We compare several major financial crises occurred since the20th century, including the Great Depression of1929-1933, the collapse of the Bretton Woods system, European Monetary System crisis, the Japanese banking crisis, the financial crisis in Southeast Asia and the United States subprime mortgage crisis.Chapter4is the rescue comparison of the three larger financial crises, specifically including the reasons for the outbreak of the crisis, the government relief measures, the relief features, the relief measures defects evaluation and comparison of crisis relief results.Chapter5is the perspective of the international financial crisis rescue. As a starting point of subprime mortgage crisis, we compare the world financial crisis rescue mechanism, the international organizations in the rescue of the financial crisis, the role and suggestions for improvement taking IMF for example.Chapter6is the thought and summary of the U.S. subprime mortgage crisis relief. It includes relief object, rescue body, relief timing, rescue mode selection, cost-benefit analysis, fiscal aids and monetary policy coordination mechanism, expected management and rescue exit mechanism etc.Chapter7is the revelation of the bailout of the financial crisis on China. The rescue experiences and lessons of the financial crisis, from the United States, Japan, Europe and other developed countries and regions, are undoubtedly very important inspiration and references to China. To this end, we have to do:(1) learn lessons, further reform the financial system; prepare for danger in times of peace, prevent crisis effectively.(2) note the timing of the crisis assistance and targeted.(3) make the liquidity and confidence in the market to recover in the shortest time.(4) ensure the coordinated development of financial innovation and risk regulation.(5) establish timely a deposit insurance system.(6)improve effective mechanisms of disposal of financial institutions.