Human society

Objectives of the proposed study

Credit crunch in UK

The proposed research issue is very topical and has a great value in the context of human society. The problem is old as well as very new. The economy is the basic of a nation. So if the civilization exist the issue of the research will remain be the valuable. Though lot of studies and research has been done on this topic, still it is unsolved issue. It is not a new problem but present recession is too deep which could stay long and affect all over the world in a large scale. Some people have the different argument compare to other about causes and remedies. Though there are different argument about the above research problem it is commonly acknowledged that credit crunch bring recession and economical depression. All the problems happened from credit crunch and its causes might view in different perspectives. But the solutions of credit crunch are more complex. Because the influential groups and indicators are very tough to disclose or some sort of political relevance is occurred. We need to assess and find out the way of possible solutions for the betterment of social issues and for economical knowledge for the academic career. That's why the proposed research will carry out with the following objectives.

Research objectives:

  1. To understand the trade and different relative economic theories may reliable for the credit crunch.
  2. To disclose the actual means and influential groups of credit crunch including poli-psychological factors.
  3. To find out the influential factors of economic difficulties.
  4. To find out there's any alternatives tool to face credit crunch and solve it.
  5. To discover the global aspect in the UK context regarding the proposed research.
  6. To identify the possible remedies before and after credit crunch.
  7. The Context(s):

A credit crunch is known as credit squeeze. When finance crunch or crises in credit reduce the general availability of loans or sudden tightening conditions required to obtain a loan from the banks, then it is accepted as a credit crunch period. The reasons behind credit crunch are innumerous but it is obvious that credit crunch bring the recession. Credit crunch changes the relationship between interest rates and credit availability. Basically it is accompanied by a flight to quality by lenders and investors because they seek less risky investments. The research also will try to find out the poli-psychological issues relating to the problem of credit crunch.

Financial world is changing rapidly. Northern rock has nationalized. Banks fell in crises of liquidity. Street markets are struggling and few of them already shut with largest brand name like as; Woolworth. Some of them are merging to continue their operation. Unemployment rate is crossed the historical record in UK. First world countries alliance G-20 declared $1.1 trillion rescue budget for the largest financial institutions and others(, 2008).

Yet credit crunch is an unsolved and critical issue. Though it is an economical term but a mostly concerned with political, socio-cultural and psychological issues as well. Noam Chomsky (2006), discussed, unfortunately all too credible, brings to prominence a fourth critical issue. According to him the fourth critical issue is the growing democratic deficit which refers the gap between public will and public policy. It is a sign of failure of functioning formal democratic institutions in a democratic culture with vitality and substance. We can see it when too credible democratic countries like UK fall in crises.

Father of modern economist Adam Smith(1776) criticized tradesman as they acting together within the guilds. According to him, they want to form and constitute a power block and manipulate the state into regulating special interests against the general interest. We see in real picture that the companies become weak and bankruptcy but the owner and director are becoming rich in comparative phases of time. The crucial scenario is the banking sectors in UK. Most of the banks are saved by public money but the bosses are taking unbelievable bonuses in a known language becoming fatcat.

A great philosopher, economist and politician Karl Marx's(1867) identified, labour at an adequate level of productivity is able to create and conserve more value than it costs the employer to buy. Employers buy labour to preserve and augment the value of capital at his command. It is like an unpaid labour which makes misappropriation of wealth among the people and makes the class differences. That's why we see, rich is becoming richest and poor is becoming poorer. So massive differences make lot of people unable to meet the living standard and lost the economic credibility. We see a lot of differences in income in UK. The council beneficiaries are becoming large. And the government is in critical situation to meet the social welfare demand.

The macro-economic factors are also liable for credit crunch. We saw the impact of USA credit crunch immediately affect the UK. It was happened previously as well. In a findings of Annelena Lobb(2007), the external reason of black Monday(1987) was disputes between US and European particularly Germany about foreign exchange rate. As a external factors of UK the war in Iraq and Afghanistan is the speech of mouth.

A researcher of PIMCO, McCulley (1998) coined a term Minsky moment in which he clarified Minsky moment comes after a long period of prosperity and increasing values of investments, which has encouraged increasing amounts of speculation using borrowed money. He described Minsky moment is the point in a credit cycle or business cycle when investors have cash flow problems due to spiraling debt they have incurred in order to finance speculative investments. But as a public institution, a state should consider the factors. As it is experienced before, UK failed to recognize the problem timely. Comparatively to the emerging country and social welfare country UK is facing the critical situation because of failure of policy. The central bank of England declared the historical lowest rate of interest at .5p ( Critics are saying the bad impact of it as well. Obviously it is helping somebody or some sector. But is it good for long run? Or is there any alternative public policy available?

Ludwig von Mises, 1912, translated by H.E Batson analyzed Austrian business cycle theory. In the analysis he showed credit crunch is the consequence of inherently damaging and ineffective central bank policies. Central bank is the agent of state which always represents the government view. The research depicted central policies liable for speculative economic bubbles and lowered savings. The ultimate result causes unsustainable boom.

This boom brings widespread mal-investments, misallocated capital resources into areas that would not attract investment if the money supply remained stable. The UK housing sectors is the perfect example of the analysis which was hit first as a sign of credit crunch.

We saw there are different research, argument and analysis about the causes of credit crunch. The knowing cause can show the solutions of problem. But we see credit crunch is happening in the phases of time like as 1930s most part of the world, 1990s in basically in Japan, 1998s in Russia. Where the end of it? Some economist and analyst gave findings that credit crunch is the way of economic life cycle. It will happen by rotation in a stage of economy. But it is a research finding not a solution. Stuart Calder (2008) gave some measure to control and shape the investment. According to him the key strands are; 1) massive, accessible computing power, combined with vast arrays of data, such as tick-by-tick price histories. 2) Convergence of liquidity into a handful of global super-exchanges that allow 24 hours investment virtually in any asset. 3) Continuous, mobile access to computing power and data through high-bandwidth connections from super-powerful portable devices. 4) Increased use of artificial intelligence to manage the whole investment process, both for individuals, and collective investments.

But the economic crises is a result of policies taking by government of a state, socio-psychological perspective of the people how we look at it, poli-psychological perspective what steps they take and how they feel it compare to others. According to the state policies to their people, we can say them welfare country, fair country, corrupted country and so on. As a diver poli-psychology is a crucial issue for the reign and to handle the credit crunch as well.

Research design (including methods) or critical approach:

The research deserves deductive method. But it is going to produce some new conceptual argument as well. It will survey to find out the generalize valuation. Because the people who directly affected and involve with the situation is more important thought than study thousand pages. The scope of research also will cover different types of secondary data like as; journal, books, newspapers, expert's articles different economic theories and reviews. The research will be conducted through both of qualitative and quantitative methods. Interviewing and questionnaire will be also tools of the research.

Questionnaire will be conducted to gather the mass perception about the research problem. Basically it will convey the quantified result in a sample size. It is essential to assess the general perception for the research objectives. For the qualitative and conceptual data, the research will go for interviewing different types of people representing a specific sector.

The main source of secondary data will be reliable and authentic internet sources. As the modern life mostly depend on technology and most of the aspect could be founded in online, so I think this the easiest and perfect way to gather data and access to the journal, books, newspapers, experts articles and different economic theories and reviews via online.

The research is going to be conducted in a timeframe and with lots of scope to explore. So there are lots of problem may arise. The crucial problem will come from survey. To be satisfied from survey, it is almost impossible to do the research in the given timeframe. In case of interviewing it will be tougher to manage.

To get rid from the above difficulties, the author like to be choose in case of interviewing and will go for a manageable sample size to do the questionnaire.

Ethical issues:

Special resources required:

Though the research is going to conduct through discussions, there's lot of option to present the collected data in an articulate way. The author is not very skilled in using access and excel. In the other way it will be expensive to hire expertise for that. So in the timeframe, the researcher will give more emphasis on discussion and conceptual analysis with unavoidable data presentation by using Microsoft word, word art, table, chart and graph. The researcher is also facing difficulties to access in the university resources and downloads the full essential text. It should resolve by consulting with librarian hopefully. The author also has some confusion about the referencing style. It must need to be solved. Obviously the researcher will be in regular contact with the advisor

Timetable of main stages of the study:

  1. Student Records will be updated with this information. Note that we will continue to use your University email address and you should check your account regularly.
  2. The University document Research Ethics: A Handbook of Principles and Procedures can be found via the University's Postgraduate internet pages.
  3. Summary of proposed study should indicate the Topic to be covered, and the study objectives or intended outcomes. Indicate here if your Dissertation is likely to include confidential material (eg commercially-sensitive information), so that a procedure for dealing with it can be agreed.
  4. This section should summarise the context(s) to your study. You should clarify the academic context by indicating some of the principal themes, issues or problems identified by current or previous scholarship/research/practice. Include a short bibliography. You may also indicate any relevant social, professional and institutional/organizational contexts relating to the study. Your analysis of this context should make it clear why you consider the study to be worthwhile.
  5. This section should describe how you plan to approach your Topic and indicate briefly why you think this approach is appropriate. Any fieldwork elements should be described here. If the proposed study raises any health and safety issues you should identify them here, and attach securely to the form a statement signed by yourself declaring how these have been addressed.
  6. Highlight any ethical issues raised by your study. If required, attach further information on how these have been addressed. Indicate on front page whether you need to seek ethical clearance from any external body.
  7. Indicate here the location and availability of any resources, such as library or archive material or data sets, beyond those which are readily available in the University. Equipment to be used, and its availability, must be listed.
  8. Take into account any seasonal constraints, for instance the school year for school-based projects, or natural constraints for work in the field.

Type or print clearly. See notes at end of document.

  1. Indicate if this is the first or revised (following referral), proposal:
  2. First Tick the relevant box Revised

    Student number:

  3. Student name:
  4. Contact address and phone number for period of study:
  5. Course: e.g. Guildhall College MSc / MBA
  6. Staff consulted in the preparation of this proposal: Name of Advisor
  7. You must sign and date this form to signal your adherence to the Principles in Research Ethics: A Handbook of Principles and Procedures.



    n.b You MUST submit a signed copy of this form, either electronically with a scanned signature or in hardcopy.

    Tick box if any external body's ethical clearance must be obtained, and give details

    Now submit the form to the Dissertation Module Tutor or other named contact. n.b. Submission should be via the Examination Office at Guildhall College - you do NOT need to attach an assignment feedback form


    Unconditional Acceptance

    Conditional Acceptance (attach details)

    Referral (attach details)

    Dissertation Advisor assigned:


    Final Dissertation submission date:

    Specify the Dissertation submission deadline as given during the Research Methods Workshop

    Signature of Dissertation Advisor to confirm awareness of the Principles in the University's document Research Ethics: A Handbook of Principles and Procedures, and their agreement to abide by it:

    Copies: Student, Dissertation Advisor, Student Records

  8. Objectives of the proposed study (including provisional title):
  9. This section should explain the key objectives of the research. This is often presented by a short discussion (minimum 100 words) followed by 4 to 6 bullet points.

    You may wish to include a "working" title. Please note the title and the objectives are likely to be further developed and maybe even be changed after discussions with your advisor.

    One of the key roles of the P3 form is to facilitate the allocation of an appropriate advisor so please give as much information in this, and the following sections, to help with this process.

  10. The Context(s):d
  11. This section should give a broader overview of your chosen topic and show that you have read around the subject and know how it fits into the broader context of your studies.

    You should write a minimum of 300 words giving a concise background to the proposed study. This section should be supported by the inclusion and use of at least 6 academic references.

    Make sure the information you provide is specific to your proposed dissertation and is NOT just a generic coverage of the topic.

  12. Research design (including methods) or critical approach:
  13. This section should show that you have given the methodology due consideration and have thought about the data collection approaches and techniques that will be most appropriate. You should show an awareness of the research philosophy that you intend to adopt and how this will relate to the research approach and data collection techniques you intend to use. You should relate the research methodology to your research objectives stated in Section 7 and explain the rationale behind the methodologies selected.

    This section should also identify key problems and difficulties you anticipate with the study and indicate how you intend to deal with these issues.

    The research section should be a minimum of 200 words.

  14. Ethical issues:
  15. This section should be completed regardless of whether ethical issues are an issue with your study.

    Proposals for studies that are likely to be involved with ethical issues should show an awareness of the University policy on ethical research and indicate how they intend to address the problems that may arise.

    Proposals for dissertations that are not likely to face ethical issues should clearly state that no potential problems have been identified.

  16. Special resources required:
  17. Dissertations requiring special resources should indicate their requirements here - Access to specialist data collection techniques, access to chosen sample, presentation of data in a non-standard format etc.

    Proposals should also indicate how the required special resources are to be sourced and accessed.

  18. Timetable of main stages of the study:
  19. This section should provide details on the proposed schedule of work. Students should be aware that dissertations usually take about one year to complete and that this is the approximate length of time the University allows on your registration once your P3 form has been accepted.

    You should show, using either a diary or Gantt chart format, how long you expect each of the key stages of your study to take to complete. The information provided should include estimated completion times/dates for the literature review, final methodology design, data collection and analysis and final writing up stages of the dissertation.

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