Relationship between Financial Activity and National Economic Performance - Coursework Example

According to Franc and Young: “A positive relationship between stock prices and exchange rates with direction of causation running from exchange rates to stock prices can be explained as follows: a domestic currency depreciation makes local firms more competitive, leading to an increase in their exports” (Franck and Young, 1972).... Economists generally accept that there is a positive relationship between the stock market and economic growth.... Inflation and economic growth are the two key elements that influence contemporary macroeconomic performance....

This report talks that the role of financial activities in national economic performance is highly important.... Review of economic performance and Financial Systems Joseph Schumpeter explained in 1912 that how the provision of loan was essential for the development and for the entrepreneurship.... Nevertheless, Robert Lucas, among various others, debates that the economists poorly exaggerated the importance of financial attributes in economic performance (Lucas, 1988)....

It is anticipated that these reforms will have an impact on the efficiency and performance on China's banks.... The empirical evidence on banking efficiency aims at highlighting features associated with the role of economic development and banking reforms in China over the given time.... onsidering economics, the theoretical construction representing an economic process, basing on a set of variables and logical sets as well as relationships which are quantitative, can be defined as a model....

The aim of the following essay "Differences between Institutionalism and Rational Choice Theory" is to contrast the concept of institutionalism with rational choice theory and how they matter in political life.... The writer seeks to highlight the vivid distinction between these two terms....

MF, during 2007, revised its economic forecasts for the UK economy due to its improved performance and termed it "impressive" as during last five years i.... om 2008)It is also however important to note that the performance of GBP Pound sterling is also declining over the past few years, mainly due to strong performance of Euro against major currencies and the fact that most of the trade within EU region is dominated by Euro.... Most developed nations of the world including US and UK are experiencing an economic meltdown causing serious economic problems for both the countries....

rincipal among them are new paradigms in regulation and supervision over investment banking activities and changed due to high risk assumption by agents as traders and investment banking failures, US influence through take over, merger and acquisitions of British investment banking activities, increasing importance of relationship banking and radically altered scale of FDI activity in UK area since late 1980s reflective of hastening pace of globalization and relationship relocations....

and hence overall value adding to the economic performance, productivity and internationalization of the nation.... The author of the study explores the relationship between entrepreneurship and economic growth.... A simple model of the relationship between entrepreneurship and economic growth is presented in the figure below (Figure 1):Figure 1: A simple model showing relationship between Entrepreneurship and Regional Economic Growth (Source: Gleave, Bill Dr....

ut of these perspectives come varied hypotheses regarding the relationship between social responsibility and corporate economic performance.... A final perspective hypothesizes an inverted U-shaped correlation between social and economic performance.... This study attempts to specify the underlying dimensions of a multiple measure of corporate social responsibility and investigate the relationship between corporate social performance and multiple measures of financial performance....