US Subprime Mortgage Crisis and Excessive Credit Creation: the Policies of Federal Reserve Bureau（FED）

• Main Authors: Chih-Liang Wang, 王智樑
• Other Authors: Mignonne Chan
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/42934087876743355308

碩士 === 淡江大學 === 美洲研究所碩士班 === 98 === At the beginning of 2007, the Subprime Mortgage Crisis broke out in the U.S. and spread across the global financial market at an amazing speed, and we know it still has the great influence on the world''s economy nowadays. The crisis stemmed from the subprime loan market. This paper aims to figure out that why the financial products triggered such a severe crisis. What is the fundamental reason for the crisis? What is the linkage between the Federal Reserve and the crisis. Firstly, this author reviewed the course of the Subprime Mortgage Crisis and analyzed it from the financial environment before it occurred, and explained some related incidents and timeframes. Finally author discussed the U.S. government''s policies. There are four major points in this paper：financial monetary speculation, mistaken Fed''s policies, incomplete financial regulations and inaccurate credit rating agencies and system. In conclusion, the author defined the reasons of the crisis based on the research framework and also hoped to prevent the financial crisis from happening again. The author recommends that the financial regulatory structure and the monetary authority in the U.S. be reformed. The author concluded that the optimal choice would be to grant more regulatory power and policy tools to the Fed, and thereby create sound financial environment. Furthermore, Fed’s ultimate mandate is to prevent financial crisis and to provide the macro-management support for the U.S. economy.