The Geography of Finance

Question 1

Date of Thatcher Government revolution of financial markets?

Answer 1

1986; deregulation of finance, not just national but international monetary flow.

Question 2

Functions of finance

Answer 2

1. Facilitate trade, exchange, and development
2. Manage, price, and distribute risk
   coordinating
3. Decentralised networks of market
4. Collecting and distributing assets
5. Being a site for pooling the assets of decentralised agents
6. Reaping the benefits of economies of scale
7. Spatial and temporal asset switching
8. Simultaneously sites of asset pooling and the mechanisms for market-making

Question 3

Origins of crises

Answer 3

Barro (2006) argues most have originated at the periphery of the global economy: the product of speculation, poor information, and poor market regulation. Capital flowing back to the core markets of the global economy, but largely absorbed

Current issues from the core of the market: overconfidence in self-regulation, and the rationality of market agents