Systemic Risk Analysis

During the past several years (since 2008) the world has experienced one of the most devastating financial crises- Along With the crisis came
significant volatility of the global financial markets, business closures, layoffs of thousands of highly educated and qualified employees across
disciplines, and substantial loss in productivity and economic output- The FED Kept interest rates at historically low levels Where they Will probably
stay for the unforeseeable time period until economic growth convincingly changes course-
Referring to the evidence well reported in scientific literature, you need to prepare an analysis of the world’s financial system evaluating the factors
that contributed to the current situation, and offering solutions to the drivers of the crisis-

In your paper you are required to:
Describe the problem to be solved or questions to be answered
Explain the concepts needed to understand this problem
Pull in and cite existing research having direct relation to your study (at least 15-20 citations need to be included in your paper)
Offer explanations of significant reason(s) for the latest financial crisis or more recent global events that can lead to major macroeconomic
disruptions
Describe the effects of the crisis on a number of facets of society
Analyze important data for the last 15-20 years such as relevant macroeconomic indicators (GDP growth, GDP as a percentage of sovereign Debt,
exports, imports, inflation, interest rates, etc-) for different countries, financial market data for these countries (major stock indices), currency trends,
etc- (you need to comparatively analyze at least 3 countries)
Represent the analyzed data graphically, organize them in tables and plots and offer your own interpretation of the results
Perform statistical analysis of the data to show dependencies and/or causalities (trends in the data, correlations, lead-lag relationships using shifted
time series data) among different macroeconomic indicators- Use regression analysis With GDP growth as dependent variable and GDP as a
percentage of sovereign Debt, exports, imports, inflation, interest rates as independent variables to test the explanatory power and statistical
significance of the independent variables for GDP growth-

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