Effects on the Global Economy There is global slow down in economic growth Reduced demand has led to price deflations in other sectors GrowthRate % Years
Response to Financial Crises U.S. government buys assets worth (700) billion dollars related to mortgage The US acquired shares in the companies benefiting from this plan Raise the ceiling on guarantees to depositors Grant tax exemptions worth about $100 billion Interfere of the compensation granted to heads of companies
Response to the Financial Crises Locally Several defensive measures had been taken by the Jordanian government to maintain monetary stability and to create an sustainable economic growth rates.
Jordan corrective & Preventive action taken Reduction of interest rate 3 times in 2009 Issued new temporary regulations to ease credit requirements Lowered the Required Reserves for the local Banks Guarantee all deposits in the Jordanian banks until the end of 2010
Key lessons of the financial crisis Globalization Effect Central banks role Regulations
Brands in the Crises
Brands in the Crises
Q & A
References Auer, P. & Wehrmüller, S. (November, 21, 2008). Assessing the impact of the financial crisis on the US labour market. Retrieved (Dec, 23, 2009) from http://www.voxeu.org/index.php?q=node/2603. BBC website. (2007). Financial crises: Lessons from history. Retrieved (Dec, 15, 2009) from http://news.bbc.co.uk/2/hi/ business/6958091.stm. Badaracco, R.(2009). Reasons For the Financial Crisis. Retrieved (Dec, 15, 2009) from http://ezinearticles.com/?Reasons-For-the-Financial-Crisis&id=1694865 . Central Bank of Jordan. (2009) various reports and announcements. Retrieved (December, 23, 2009). from http://cbj.gov.jo . Gerald, k. (2009). Three Ways to Know When the Credit Crisis Hits Bottom. The Money Map Report. Retrieved December, 18, 2009, Money morning .com. Laitman, M. (October, 17, 2008) The Financial Crisis – an Analysis. Retrieved (Dec, 15, 2009) from http://www.laitman.com/2008/10/the-financial-crisis-an-analysis Moneycafe (December, 16, 2009) Prime Rate Retrieved (Dec, 23, 2009) from http://www.moneycafe.com/library/primerate.htm.