1. Chapter 7 International Lending and Financial Crises

2. [teaching targets and demands]
  To make students master the development of international lending to developing countries and the formative causes, characteristics and harms of international financial crisis.

3. [Teaching key and difficult points]
The formative causes, characteristics and harms of international financial crisis.

4. [Content of courses ]
Gains and losses from well-behaved international lending;
   Taxes on international lending;
International lending to developing countries;
Financial crisis: What can and does go wrong?
   Resolving financial crises;
Reducing the frequency of financial crises.

9. International Financial Crises: Sources of What Goes Wrong
Overlending and overborrowing
Exogenous negative international shocks
Excessive exposure to exchange rate risk
Volatile international short-term lending
Contagion

10. Combating Financial Crises
Resolving crises after they have occurred
Rescue packages
Debt restructuring
Making crises less likely to occur
Sound macroeconomic policies
Timely and accurate data reports
Avoiding short-term borrowing denominated in foreign currencies
Better regulation and supervision of banks
Controversial
Exchange rate policy
Role of IMF
Use of capital controls