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Title: Research on the Precaution Measures of the Financial Crisis
Source: International Conference on Engineering and Business Management 2012(Part 4 Urban Management and Financial Investment) (pp 2987-2990)
Author(s): Wenyi Dong, Business School of Shandong University at Weihai, Weihai, Shandong, China, 264209
Cuini Zang, Business School of Shandong University at Weihai, Weihai, Shandong, China, 264209
Abstract: It becomes an important research subject for the current economic theorists and government authorities to study the financial crisis formation mechanism and find the effective measures to deal with it. Through the analysis of the economic phenomenon and the national financial policies before financial crisis broke up, this paper finds three reasons of financial crisis-- overheated economy; over-dependence on foreign capital and slack financial regulation. Meanwhile, to solve these problems the paper also offers some suggestions. Prevention overheated economy means are to use the proper ways to stimulate economy; prevent economic bubble and adjust income distribution. The keys to avoid over-dependence on foreign economy are to explore the domestic demands; treat the financial opening carefully and keep the long-term stability of economy and exchange rate. As for the financial policies, perfecting macro prudent supervision system; reducing the systemic risks and strengthening the international financial cooperation are the main directions to strengthen the financial supervision. Besides, resolutely implementation government intervention is the established guidelines to deal with and prevent financial crisis.
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