real-world economics review, issue no. 58 The Eurozone crisis: Looking through the financial fog with Keynesian glasses Jorge Buzaglo [Sweden] Copyright: Jorge Buzaglo, 2011 You may post comments on this paper at http://rwer.wordpress.com/2011/12/12/rwer-issue-58-jorge-buzaglo/ It is easy to become confused about what is really happening to the European economies. The media are totally focused on financial surface phenomena. Attention is given only to the developments in the financial
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REPORT TO NEPHEW The economy of Greece is the 27th largest economy in the world by gross domestic product & thirty third largest by purchasing power parity according to the data given by International Monetary Fund in 2008. But amidst this suddenly you could see news flashing everywhere about the Greece being declared bankrupt & its efforts to cope up with this problem. Now you wonder what is this crisis
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Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be
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Union, during the times of the Celtic Tiger (Dorgan 2006). All seemed as if Ireland was the first success story of the creation of the Eurozone until the crash. After the creation of the Eurozone, the goal was to help struggling economies to use the power of the Eurozone to create growth and during the Celtic Tiger years it seemed to be working. However, the Eurozone was not doing its job of overseeing the activities of the country of Ireland and let it slip through the cracks. After the crash, unemployment
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economy, Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be depicted
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The European Union: Questions and Answers Kristin Archick Specialist in European Affairs March 4, 2013 Congressional Research Service 7-5700 www.crs.gov RS21372 CRS Report for Congress Prepared for Members and Committees of Congress The European Union: Questions and Answers Summary The European Union (EU) is a political and economic partnership that represents a unique form of cooperation among sovereign countries. The Union is the latest stage in a process of integration begun after
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To what extent, is the success of Australia's Fiscal policy, based on the changes of the current federal budget, viable for a stronger economy? This essay aims to illustrate, the success of Australia’s fiscal policy implemented by the current federal budget and its effects for the long-run. In relation, do these strategies provide sufficient evidence that ensures Australia’s “position of strength in the world economy” and if they are considerably better, in comparison to other international economic
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End of Period | Interbank 3-Month | 2011 | Jan | 0.44 | | Feb | 0.44 | | Mar | 0.44 | | Apr | 0.44 | | May | 0.44 | | Jun | 0.44 | | Jul | 0.44 | | Aug | 0.31 | | Sep | 0.25 | | Oct | 0.44 | | Nov | 0.50 | | Dec | 0.38 | 2012 | Jan | 0.38 | | Feb | 0.38 | | Mar | 0.38 | | Apr | 0.38 | | May | 0.38 | | Jun | 0.38 | | Jul | 0.38 | | Aug | 0.38 | | Sep | 0.38 | | Oct | 0.38 | | Nov | 0.38 | | Dec | 0.38 |
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Government trust crisis The prestige of Greek government was impaired seriously during crisis time. Greece borrowed uncontrollable amounts from the financial market to ensure the liquidity for the budget deficit. The budget deficit limit allowed in Eurozone was only 3% of the GDP, while this level of Greece in 2009 was 13.6% and might even increase to over 14%. To cover the overspending in the past years, the Greek government had reported data inconsistently and bias, containing various unusual sections
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1. What causes of poverty can u name? Lack of capital, physical capital(buildings, machines etc.), human capital and entrepreneurship 2. What causes of richness can u name? Over-population, poor nations-lack of natural resources, prosperity requires liberty 3. Name 2 kinds of economic planning Mandatory – setting quotas and mandatories for goods Indicative – encouraging production of some branch by subsides, grants and taxes 4. Name at least 3 economic systems Socialism (planned and collective)
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