power eroding margins. Although some revival in operational metrics was witnessed during late 2010-11, the industry continued to lack the pricing power to drive out of its current stagnancy. Globally weak macroeconomic scenario, the European sovereign debt crisis, geo-political turmoil in the Arab countries, high interest rates, inflation and a muted domestic corporate performance during the current fiscal (year to March 31, 2012) have sapped the industry’s ability to sustain inflation adjusted
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The Bank Liquidity Crisis and Aircraft Finance: A Sector Review By Ronald Scheinberg Fewer lenders, higher pricing, yield protection among results of the worldwide liquidity crisis. The liquidity crisis in world financial markets precipitated in fall 2008 by, among other things, the collapse of Lehman Brothers, has continued unabated. This crisis has affected the extension of bank credit to every industry, with banks reluctant to make loans so as to preserve their capital, especially in anticipation
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Primary tool is Open Market Operations * Buying and Selling short term securities * Dual Mandate Inflation & Unemployment * ECB does not have a dual mandate like the Fed THE EUROPEAN UNION (EU) * Explain the purpose of an “economy” from a European perspective * Equity & Leisure more important than consumption * Social goals more important than individual goals * Market for production; Government for
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by Olivier Blanchard December 22, 2009 Disclaimer: The views expressed herein are those of the author(s) and should not be attributed to the IMF, its Executive Board, or its management. Before the crisis, there were strong arguments for reducing global imbalances. As a result of the crisis, there have been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does this mean that imbalances are a problem of the past? Hardly. The paper
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threats that they may present to Businesses. Background: Germany is located in central Europe. Its’ largest city which also is the capital is named Berlin. It is home to over 80 million people, which makes it the most inhabited country in the European Union today. Germany is a major leader and extremely influential in terms of economics and politics within Europe. It is one of the most powerful leaders in many different ways and has lots to offer. Germany has a powerful history which of course
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The Euro-zone is a failed monetary union Euro Zone was formed as an economic and monetary union of 17 European states that adopted Euro as their common currency. Its aim was to provide integrated financial markets and improved economic stability and growth in these countries. But it failed miserably in this role. Initially when the global outlook was rosy, Eurozone countries reaped benefit from it in the form of highly stable currency, low prices and lower interest rates, which ultimately resulted
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new currency when it entered in circulation in 2002. As we can see, there has been an appreciation of the Euro respect some currencies like UK sterling pound but generally, from 2008 there has been a depreciation of the euro due to the euro crisis. This factor has affected Portugal in the decrease of the trade deficit as we saw previously. However, Portuguese productivity has not increase in the same line as the main countries. To see how the evolution of real exchange in Portugal within
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of Florence, Barcelona, and London were full of Europeans on their (unimaginably long) holidays, acting with apparent disregard for the dire predictions in the press of a European Union (EU) on the verge of bankruptcy and dissolution. Meanwhile, financial markets backed off from their attacks on the PIGS (Portugal, Ireland, Greece, and Spain) while those porcine countries moved forward with significant reforms, slashing their deficit and debt levels. German growth in the last quarter has driven
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directly. Germany as a whole has developed greatly in recent years, in it’s society, it’s economy and other important areas. In my speech I will address many points that discuss Germany’s evolvement into a European economic superpower. I will discuss most importantly the history of Germany in the European Union and how it’s connected to the role of the economy in German history, exploring how Germany has developed in areas such as foreign policy, Gross Domestic Product and Inflation figures, the great
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to the Financial Crisis? Christian Laux and Christian Leuz I n its pure form, fair-value accounting involves reporting assets and liabilities on the balance sheet at fair value and recognizing changes in fair value as gains and losses in the income statement. When market prices are used to determine fair value, fair-value accounting is also called mark-to-market accounting. Some critics argue that fair-value accounting exacerbated the severity of the 2008 financial crisis. The main allegations
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