Poland able to avoid the worst effects of the economic crisis that gripped most of Europe during 2008–2009? Poland was able to avoid the worst effects of the economic crisis by being fiscally conservative keeping public debt in check, not allowing it to expand during the recession; joining the European Union, giving it easy access to the large consumer markets of Western Europe; and curbing inflation to ease Poland’s entry into the European Union. QUESTION 2: What lessons can be derived from the
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Evolution of Basel Norms and their contribution to the Subprime Crisis The article highlights the emergence of the Basel Accord in 1998 and how it has evolved over the course of the last 23 years. Contrary to the popular belief capital regulations have been considered the biggest underlying factor of the subprime crisis owing to securitization, the shadow banking system and the flexibility given to banks in risk assessment. The recent Basel III norms though aim to mitigate the already caused damage
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HSBC’s Investment Bank Profit Falls, U.S. Bad Loans Increase http://www.businessweek.com/news/2011-11-09/hsbc-s-investment-bank-profit-falls-u-s-bad-loans-increase.html Italy Debt Crisis Italy officially the Italian Republic is a unitary parliamentary republic in south-central Europe. To the north it borders France, Switzerland, Austria and Slovenia along the Alps. To the south it consists of the entirety of the Italian Peninsula, Sicily, Sardinia–the two largest islands in the Mediterranean
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not reported transactional information, debt levels, and investment mechanisms to the government so that the transparency of all the transactions was not guaranteed. Such situation allowed illegal financial process within the hedge funds, thereby causing damage to the financial market and the local economy, just like in 2008 financial crisis. To react and prevent domino effect, the European Union agreed in 2010 tougher rules on hedge funds, and the European Parliament passed the new law, regulating
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HOW THE GLOBAL DEBT CRISIS COULD AFECT YOU Reasons for selecting the article The reasons for choosing the article are that firstly, it stated that aggregates for economic consequences, GDP, recession and unemployment have greatly affected Singapore economy. The article also focused on the nation behaviour of the declining economy for US and Greece due to finance crisis which in turn affect other nations, in this case, Singapore. In fact, the article briefly explained how aggregates like
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FIN 190 Asian Currency Crisis The Asian currency crisis of 1996-97 brought to light the dangers of financing massive amounts of debt in a foreign currency which the domestic currency is pegged to. It also illustrated how developing countries are ill prepared to cope with such large scale financial issues. The projected continued growth in the Asian markets was built heavily on exaggerated predictions. Between 1990 and 1996 the area witnessed an exponential development period
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McKinsey Global Institute November 2013 QE and ultra-low interest rates: Distributional effects and risks Discussion paper The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with facts and insights on which to base management and policy decisions
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European Crisis in the 1970s and 1980s During the 1950s and 1960s, Europe experienced a period of prosperity. Harold Macmillan gives a sense of just how well these times really were when he says, “Let us be frank about it: most of our people have never had it so good,” (Judt, 324). As political parties moved more towards a common center, rather than towards extremism, a rebirth of democracy was created, underlined by growth and full employment. The support for social democratic ideas flourished
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mostly the elderly who are now out of the work force. The Social Security Act was a major turning point in American history Today the U.S. Social Security system has been in the news a lot lately. While politicians throw around dramatic words like crisis and bankrupt, regular Americans have more concerns. Social Security has assisted to defend millions of employees from scarcity in their elder years, but demographic truths have transformed over the last seventy years and are still altering. (Smith
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little economics”. The global financial crisis has questioned the efficacy of the existing institutional framework and forced us to rethink on how our financial systems are regulated. It has also posed an important question whether the root cause of this global crisis has been the highly praised ‘Open Market Approach’. The inter linkages in the global economy has ensured that no country remains isolated and unhindered by the crisis. With the economic crisis looming over the people at large, unemployment
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