Global Capital Market—-What factors lead to Financial Fragility The paper should follow a particular outline: Theory, evidence, policy Need an organizing device. The required source is Ostry, J. D., Ghosh, A. R., Chamon, M., & Qureshi, M. S. (2011). Capital controls: When and why?. IMF Economic Review, 59(3), 562-580. In this source, the writer clearly believes that at this point, some form of capital controls will be needed. Greenspan’s WSJ editorial ends by arguing for regulating banks and financial markets so that such government intervention is not necessary. This sets up a good contrast. Where do you fall in the debate? Government sets up rules and steps aside or government steps in when things go bad? Minsky would argue that crises will happen regardless of the rules. You should know why. History of US financial crisis from Blinder could be used here. Or maybe you prefer the Asian crisis or Greece or… Outline is likely to be theory, evidence and policy. Evidence is presumably historical experience. Please use simple English vovabulary
