While not exhaustive, below is a list of the ECB’s most substantive actions to combat the crisis in chronological order. LTRO (Long Term Refinancing Operations) – December 2011 Essentially the ECB lending money to banks at very low interest rates. Used throughout the crisis dating back to March 2008, but in Dec 2011 the ECB announced LTRO with a three year term with and a 1% interest rate. SMP (Securities Market Program) – May 2010 ECB program under which it would intervene in bond markets
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Summary My blog, “Will Europe Drag Down the World”, talked about the crisis in Europe. In some European countries, the state is so critical that these countries are pulling Europe down. Greece is one of the dominant countries in this issue; it has recently experienced a global crisis. European banks are trying to improve the situation and pull Europe out of economic stagnation. They need to increase the volume of lending, because the money will be used to boost economic growth, thereby multiplying
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discusses how the euro zone equities suffered their worst session in two months. There were violent anti-austerity protests in Greece and Spain that has been an obstacle for the euro zone to cross as they make their way out of recession and financial crisis. There were disagreements among euro zone member countries on how to recapitalize struggling banks. Along with banks, the article also discusses the issues regarding autos and basic resources, which are sensitive to the economic cycle. Swedish truck
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the euro single currency when it did because its economy was not ready to form a monetary union with others in the club. Trouble in the public sector, problems with taxes, structural challenges and downfall of tourism and shipping due to economic crisis made it next to impossible for Greece to settle down being a part of euro zone. Not only was Greece in a troublesome state, but even all the European leaders are dealing with growing debt problems that are rattling investors worldwide; as everything
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sustained. One prestigious project they paid for over its budget limit is the 2004 Athens Olympics. Add that up to the failure of implementing consistent economic reforms and lending with despicable returns eventually led Greece vulnerable to a debt crisis. In result of this, Fitch ratings agency cuts Greece’s credit rating from an A- to a BBB+, first time in 10 years that the country has seen its ratings below an A grade. This will prove to be a big blow to the country as it now pushes up the cost
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Background EU Crisis • 1957 - Treaty of Rome (Germany, Belgium, Luxemnourg, Italy, France and Netherlands) • 1979 European Monetary Union (EMU) - Exchange Rate Mechanism (ERM) • still own currencies • economic cycles were not in sync • 1992 The Maastricht Treaty - introducing the Maastricht Criteria: • Independence from their governments • Convergence in inflation rate >> convergence in long-term interest rates (average had to be near of the group‘s best performer) • Fiscal deficits
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By: John Deere For years, the country of Greece was a great place to call home. It had a very high-income economy and was one of the world leaders in terms of standard of living for its citizens. The tourism industry was growing faster and faster and helped to fuel the fire beneath the economy. In fact, Greece’s economy expanded at one of the highest rates in the Euro zone in the early 2000’s due to the high volume of tourists that it accommodated. Unfortunately for them, this growth was
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Will the Euro Survive? 1. Why are Greece, Ireland, Italy, Portugal, and Spain sometimes referred to as the euro zone’s “peripheral countries”? * Greece, Ireland, Italy, Portugal, and Spain are the poorest in European Union. They are poor because of the unefficient and unsupporting system of the country to join the EU one-currency and trading system. * Greece, Ireland, Italy, Portugal, and Spain are exploited by the centre EU countries. * Their contribution in developing and maintaining
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Greece Crises : Is default the only option? Summary: The debate over "Greece sovereign debt crises as a tragedy or opportunity" has varied viewpoints. I believe that under the circumstances given in the case, it was not right to default by Greece on external debt as there were other measures such as total factor productivity through which we could reduce the fiscal deficit and convert it into fiscal surplus similar to the rest of the European union. ________________________________________
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KTM’s growth direction alternatives regarding new geographies? (550 words)- Similarities and differences KTM has 2 growth opportunities in terms of new geographies. The company can further expand its presence in the European or North American markets. If we define market by geographies, this is considered as a market penetration strategy under Ansoff Matrix, as the company focused on selling existing products into existing markets. To assess the attractiveness of European or the US markets, we
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