The Economic Crisis Of 2008-2009

The Economic Crisis Of 2008-2009
The recent economic crisis of 2008–2009 that started in United States of America rapidly spread
around the world due to the integration of the financial markets and the simplicity for investors to
move throughout such markets. Therefore, countries had to deal with the economic effects of said
crisis from a macroeconomic and regulatory perspective .
From a regulatory perspective, governments realized the importance of the Prudential Banking
Regulation and Supervision (PBRS) as a mechanism to control financial institutions and protect
customers. However, in pursuing that purpose, regulators in the European Union (EU) and in the
United States of America (USA or US) omitted a key aspect of the PBRS: incentives for the
financial institutions ... Show more content on Helpwriting.net ...
It was always a win– win situation .
However, in 2008 the real estate bubble busted. The house market deflated and the prices of houses
decreased sharply. Homeowners could no longer sell their houses at a higher price and creditors
cannot longer receive a substantial payment for their mortgages. Banks will have now to manage
lawyers, judicial process, and costs associated with the foreclosure.
To make things more complicated, many of these loans (known as "subprime loans") were sold to
financial institutions. These financial institutions packaged several of these mortgages as a
collateralized debt obligations (CDOs) and sold them to investors. The result, mortgages of all types
from homeowners in the US were spread among investors all over the world.
At the same time, CDOs turned to be a terrible investment for investors, so financial institutions
could no longer sell packages of CDOs or at least repackage them: "Why? Because of the sheer
scale of the housing bubble. Nationally, housing was probably overvalued by more than 50 percent
by the summer of 2006, which meant that to eliminate the overvaluation, prices would have to fall
by a third" . Then, investors started or at least threatened to start withdrawing their funds from the
financial institutions, so financial institutions were force to liquidate their assets, generating a
deleveraging process and a massive bank run.
Furthermore, the general
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The European Union 's Convergence Criterias : Advantage Or...
The European Union's Convergence Criterias – Advantage or Disadvantage?
This study analyses the extent to which the Economic and Monetary Union of the European Union's
convergence criterias have an influence on the fiscal policy in the member countries, and if there is
connection, if this connection is positive or negative for each member state. It will look on the
question if it is possible to unite so many different countries under one union, and if you can do this,
while the countries still are still sovereign. This research will be carried out through both EU's own
data, critical articles about the Monetary Union and statistics about the economical situation in each
of the member states.
Literature review
The British media giant ... Show more content on Helpwriting.net ...
When a trade union, like EU, describes their fiscal policy, is it very import to be critic towards the
information they are giving. This interdependence, that the united fiscal policy is giving the
countries, is only mentioned as a positive effect of the union, and the downsides about are not
mentioned at all. By looking at the information given on their website, will you get a picture of a
perfect plan, which only has good sides.
Methodology:
This study is based on both qualitative and quantitative research methods.
The basis of this research project is the Economic and Monetary Union of the European Union's
convergence criterias, which can be found on EU's website. This is qualitative secondary data, as it
is used to gather an in–depth understanding of the subject and is research, which has already been
carried out by EU.
This research project does also include quantitative secondary research methods, with statistics over
the unemployment rate for all of the European countries. This is a research, which has already been
carried out by EU.
Limitations:
The limitations there are in research projects about complex subjects like countries' financial policy
is, that the information about the spending of the taxpayer's money, can be difficult to get an inside
view of. When researching a countries' financial situation, a critical view upon the

Causes And Effect Of The Debt Crisis Essay
What is the European Debt Crisis? The European Debt Crisis is the failure of the Euro, a currency
that ties seventeen European countries together. In this paper, I will be describing the cause and
effect of the debt crisis along with what would happen if the European Union stayed with the
economy they have. Then what I believe is the best solution to fixing the debt crisis.
Causes
Formation of European Union
Adoption of the Euro
Increasing Debts
Large Amounts of Borrowing
High Interest Rates
Large Government spending
High Taxes
Paying Debts with Barrowed Money
Monetary Inflexibility
Greece on the brink of defaulting
There are many causes for the debt crisis to start. Before world war II Europe had very strict trade
barriers between countries examples being currency exchange fees and trade tariffs. Then World
War II happened and was so detrimental to Europe they couldn't continue to have such strict trade
barriers. The barriers were then slowly removed with the first barrier removal being steel and coal.
This worked well enough that it caused twenty–seven countries to sign the Maastricht Treaty thus
forming the European Union (UN). This made trading throughout all Europe easier which caused
more trade to occur within Europe.
In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the
adoption of the Euro these seventeen countries discontinued their old currencies and monetary
policies. Monetary Policies

Will the European Union Survive? Essay
"Europe must prevent Greece from becoming an out–and–out catastrophe and make sure that the
same fiscal 'remedy' is not applied to other weak economies" –– Franziska Brantner
Europe is a powerhouse of Western culture and science. It possesses an economy with an annual
Gross Domestic Product of over sixteen trillion dollars.1 Europe's global economic connections are
worth billions to developing countries and even the United States of America.2 Regrettably for the
global economy, the European Union may collapse very soon, the cost of allowing incompetent
politicians to run an economy on bad policy.3 A fiscal union is necessary to prevent the destruction
of the Eurozone.
The whole objective of the initiation of the European Union was ... Show more content on
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A similar proposed, but not enacted, solution was suggested called the European Stability
Mechanism, a permanent system put in place to replace the fleeting EFSF and EFSM.10 Another
proposed solution, popularized by Jakob von Weizsäcker and Jacques Delpla, are what are called
"Eurobonds".11 A so–called Eurobond is where investors loan some money to the European Union
at a certain interest rate (among the notable opponents, Germany starkly disagreed with this policy,
remarking that it is frivolous to make borrowing easier for countries in which the very cause of the
problem was too much borrowing)12. Additionally, the European Central Bank ("ECB") has also
intervened in various ways.13 The aforementioned methods include, most prominently, a pledge to
pursue all avenues necessary to help the debt–ridden countries meet their fiscal objectives for this
year and the years to come. What these solutions are all lacking is a collective power to enforce
fiscal responsibility. If PIGS are all bailed out utilizing the EFSF and the EFSM, along with the
process of sucking dry the ECB, is there any telling whether or not they can use the money
productively, or, if the governments do, can they maintain their path along

The European Central Bank ( Ecb )
Greece is a member of the Eurosystem, a collection of 19 European countries. Together, the
Eurosystem is the third largest economic system in the world, falling just behind the United States
and China (https://www.ecb.europa.eu/mopo/eaec/html/index.en.html). The European Central Bank
(ECB) acts as the head of the Eurosystem, providing the citizens of 19 European nations with a
single currency (ECB WEBSITE). The area that is within the jurisdiction of the ECB is collectively
known as the Eurozone. Due to the dependent nature of European countries on the ECB, monetary
policy is implemented across the Eurozone, with attempts at achieving price stability. In most
economic areas, the central bank is in control of only one nation. The ECB states that their goal is to
maintain inflation rates around 2.00%. The ECB is responsible for the economic welfare of 19
nations; this sometimes means that the ECB may have to turn their back on one nation (Martin,
2015).This standard of inflexibility has proven to be overall successful, as many European nations
maintain stable economies. Smaller countries, however, have suffered due to the rigid system.
Research Question
Through the extensive use of literature review, the researchers have attempted to answer the
following research questions:
What are the causes of the Greece financial crisis?
What are the effective strategies to respond to financial crisis ?
1.1 The Greece Financial Crisis
In recent years, the economic

Debt Crisis : A Deadly Blow
Debt Crisis: A deadly blow to the European economy
Breaking down European sovereign debt crisis:
The root causes of the European debt crisis stretches us way back to the purpose and structure of the
formation of EU. It was the purpose of economic cooperation that contributed to the transformation
of this 'zone of war' to 'zone of peace'. Consequently, the political cooperation among the European
countries fulfilled the structural framework in economic sector designed to make it a region of
mostly devoid of trade barrier among the countries.
The roadmap of making it a hub of free market economy was fostered by the launch of a single
currency across the region 'EURO', currently the common currency of 19 states out of 28 EU
member states creating a 'EURO Zone'. Also, simultaneously it created Economic and Monetary
Union (EMU) maintaining a uniform monetary policy in EURO Zone. However, EMU is not a
single institution, its main actors are ("Economic and Monetary Union – European Commission",
2016):
1. The European Council
2. The Council of the EU
3. The 'Eurogroup'
4. The Member States
5. The European Commission
6. The European Central Bank (ECB)
7. The European Parliament.
Nevertheless, the EURO Zone countries do have different fiscal policies of their own and here lies
root cause of the debt crisis. A uniform monetary policy but different fiscal policies mean that the
EMU controls the flow of money in the EURO Zone affecting the interest rates of this region where
the

The European Union Support A Robust Enterprise System
Introduction
In order to understand what needs to happen for the European Union to support a robust enterprise
system, we need to understand the specific issues which pose the greatest risk to the elements of
such a system. To highlight these, this paper is divided by each of the four corners of the "Diamond
of sustainable growth" with a review of what issues are specific to the EU and a recommendation in
order to subdue their effects.
Government
The European Union fails in very important and fundamental ways at being an effective and
enabling political system. Even though it managed to enable trade and movement of people across
its internal borders, as well as, set up a monetary policy, it has not been able to establish itself as the
... Show more content on Helpwriting.net ...
This in turn makes new legislation a political struggle. The process is slow moving and anything
meaningful is difficult to pass. Through this system, certain basic and essential authorities that a
government of a unified nation should have are entirely missing.
To correct this state of affairs, the attitudes of the citizens and their heads of state must change
towards becoming a unified country with a centralized government. A constitution should be written
without prejudice or favor to any particular member that would definitively establish the EU as the
sovereign force of the region. Thereby, enabling them to own as Max Weber put it, a "monopoly of
the legitimate use of force" across its members. The new government should have the authority over
the military, the fiscal and monetary policy, taxation, education, social security, and welfare over all
of its citizens. Though many of these would not happen overnight, the long term goal should be this
establishment in order to have an effective and enabling political system.
The evidence of effectiveness of such an establishment is witnessed through practically all the
prosperous countries we've surveyed throughout the course. Particularly focusing on the US, which
banded together the original 13 states with the writing of the constitution, it was able to establish a
system which assured the protection of its citizens and created the necessary checks and

The European Central Bank As A Programme Of Quantitative...
The European Central Bank recently began a programme of Quantitative Easing. Explain the
meaning and purpose of this programme, and fully analyse its likely impact.
Kate Eugenie Mary Pickering
ECN 4110 Macroeconomics
Dr Ivan Cohen
8th April 2015
Word Count: 1,100 Words
The European Central Bank (ECB) is the central bank for Europe's single currency, the euro. The
ECB's main objective is to maintain the euro's purchasing power, and therefore price stability, in the
euro area, which comprises of the nineteen European Union countries that have introduced the euro
currency since 1999 (ECB, 2015d). The ECB and the national central banks of the Member States,
whose currency is the euro, together constitute the Eurosystem; the monetary authority of the euro
area. In order to maintain price stability, the Eurosystem undertakes the necessary economic and
monetary analyses and adopts and implements appropriate policies in order to respond to monetary
and financial developments (ECB, 2015e). This essay will analyse the possible impacts of
quantitative easing (QE), recently introduced by the European Central Bank. Firstly, I will look at
the European Central Bank's use of interest rates in controlling the growth of the economy.
Secondly, I will look at the meaning and purpose of QE, and finally, I will analyse the impact of the
programme of QE recently launched by the European Central Bank.
The primary objective of the European Central Bank's monetary policy is to maintain

Greece : A Common Euro Zone
In 1992 the Maastricht Treaty was developed by the European Union and signed by 12 member
nations to create a common Euro Zone. This Euro zone uses a single currency called the Euro, in
hopes that this currency will make transactions across all member nations' trade and exchange
easier. However, no one could have imagined how big of an impact the down fall of a nation's
deficit could have on the Euro Zone, until Greece signed the Maastricht treaty in 2002. When the
Greek government came on to the Euro Zone, Greece's budget deficit and spending habits came
along with it too. In order to join the Euro zone, Greece prevented the Euro zone countries from
knowing its true budget deficit, inflation, interest rates, and other monetary ... Show more content on
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Year after year, Greece continues to receive bail out from the European Union. Other countries
neighboring Greece, like Italy, began to experience the debt crisis and eventually needed a stimulus
bailout from the European Union too. This domino effect among countries taking loans caused the
borrowing interest cost of Europe to increase and the Euro currency to further devalue. As the Euro
devalues and Greece fall further in debt, investors all over the world were afraid to invest in Greece
because they will lose money or Greece will not be able to pay them back. To save the Eurozone
countries, the European Central Bank (ECB) stepped out of its traditional role of maintaining price
stability, setting key interest rates, and controlling the Euro supply (Alessi, 2012). ECB was the only
institution capable of intervening and making decisive decision on how the debt crisis should be
handled. However, critiques, like Germany, oppose ECB for getting involved in any fiscal activities.
ECB, wanted to be a lender of last resort like the US Federal Bank of Reserve; such as printing
money and lend money to countries or buy government bonds to help relieve the debt crisis. This
did not happen until 2010 when Greece really was in deep trouble. The former president Jean–
Claude Trichet and the ECB finally initiated a Securities Market Program; in which the ECB started
purchasing the Greek's government bonds on

The Unified Monetary Policy Has Been Considered As The...
The Unified monetary policy has been considered as the most impressive step into the practical
Europeanisation, by which Euro citizens has not only felt the changes in daily life, but potentially
internalised the positive concept that being part of EU will bring more happiness to next
generations. A continuous debate between convergence and divergence within European continent
had remained controversy and unresolved along with several significant agreements made due to the
predicted economic advantages, including the boundary breaking–down of tariff and regulations
resulting in more convenience for international transactions, and utilising single monetary for saving
additional costs of currencies exchanges(Gabel and Palmer, 1995), and so ... Show more content on
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Therefore, it is reasonable and necessary to put emphasis on the importance that EU institutions bear
the primary responsibilities and expectations of supporting the EU cooperative notion and take the
role in bridging each countries in euro crisis in this vital moment, whether in formal or informal
norms. What this article will suggest is about the question 'to what degree has the institutional
transformation in EMU influenced the progression of Europeanisation,' and ' whether it is a positive
push for Europeanisation or a negative one?' There are four sections constituting the essay, the first
being introduction articulating the general reasons for probing into the meaningful role of the EMU
institution over aggregating the whole European area depending on the ways of crisis management.
Secondly, the description of the historical context related to the euro financial crisis and the process
of institutional change for management will be the knowledge base helping for

Efforts of the European Union to Help Combat the Greek...
European Union (EU) plays a major part in facing this Greek financial debt crisis, which requires a
major restructuring in the economic sector and to tighten stronger integration among EU member
country. The primary focal point is on restoring the sustainability of public finances and addressing
other macroeconomic imbalances by fostering fiscal discipline. In addition, new rules are set to
ensure stronger and more effective economic governance, particularly in the euro zone area, with
adequate mechanisms to monitor progress and ensure enforcement.
Facing the crisis, Greece has received two bailout packages from the EU, European Commissions
(EC) and International Monetary Fund (IMF). The first package (May 2010) is worth €110 ... Show
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For example, the fiscal rule is conceived to be adopted if the annual structural balance is coherent
with the country specific medium–term budgetary objective (MTO) which as stated in the Stability
and Growth Pact (SGP) to lower limit of structural deficit of 0.5% of Gross Domestic Product
(GDP) and part of preventive arm and plus it also require a "rapid convergence" in order to confront
the crisis. (European Central Bank 2012)
Moreover, a higher deficit of at most 1% is only allowed if the government debt–to–GDP ratio is
under 60% and risks to long term financial stability and sustainability are much lower and at the
same time, it puts a numerical benchmark for debt reduction for the member state of Monetary
Union. In summation, the Commission also submitted that it should take in consideration, a specific
country to keep the risk based on the capabilities of each individual area. (European Central Bank
2012)
Correction mechanism such as the European Financial Stabilization Mechanism (EFSM) and The
European Financial Stability Facility (EFSF), which is automatically activated in the case of
significant, observed deviations from the MTO or the adjustment path towards it. Both mechanisms
aim at correcting such deviations, including their cumulated impact on government debt dynamics,
and also apply to temporary deviations justified by exceptional circumstances. As good as a
strengthening of the automaticity of the excessive deficit procedure within

The European Union : An Overview Essay
The European Union: An Overview
The European economy, better known as the European Union, is certainly one of the world's
powerhouse economies, with its gross domestic product measuring at a total of 16.27 trillion in U.S.
dollars in 2015 (CIA, n. pag.). This powerhouse economy still makes up about 20 percent of the
world's exports and imports, but Europe's trading industry is not the only thing that makes the
European economy special. The European Union does not include every European country, but it is
made up of a great total of twenty–eight countries such as Great Britain, Italy, Romania, etc. ("The
EU in brief" n. pag.). In this paper, I will be discussing the state of the European Union and its
current policies. Countries outside of the European Union will also be deliberated. Finally, I will be
comparing those policies to that of the United States. The European Union was formally created in
1993, but its roots reflect back all the way to the end of World War II. Its first priority was to form
an economic union that consisted of members dependent on each other for trading purposes to avoid
potential conflict. Now this political and economic union has developed into a representative
democracy aimed to govern its current members ("The EU in brief" n. pag.).
Statistics
Along with many other economies, including the United States, the EU took a hard economic hit
during the global economic crisis of 2008, but it seems to be recovering well with its current GDP
growth

The Euro in Crisis: Decision Time at the European Central...
"The Role of the
European Central Bank in the Financial Crash and the
Crisis of the Euro–Zone"
Report based on a WEED Expert Meeting
Franziska Richter
Peter Wahl
1
Imprint:
Richter Franziska, Wahl, Peter: The Role of the European Central Bank in the Financial Crash and
the Crisis of the Euro–Zone. Report based on a WEED Expert Meeting
Published by: WEED – World Economics, Environment & Development Assoc.
Eldenaer Straße 60
D–10247 Berlin
2011
All rights reserved
This publication has been co–financed by the Ford Foundation.
The views expressed are those of the authors, and cannot be attributed to the
Ford Foundation.
2
CONTENT
Page
Summary 3
1. Introduction 4
2. Some basics on central banking 5
3. Historical changes ... Show more content on Helpwriting.net ...
However, there is almost no attention of civil society – NGOs, trade unions, social movements – for
this key player. It is the purpose of this report to trigger more interest for what the ECB is doing,
because its behaviour and its decisions are not only affecting heavily the financial sector but the
entire economy and hence wages, social systems and in the end the every day life of all citizens.
The way, how the ECB was operating before the crisis was strictly based on the monetarist concept
of central banking, reducing central banks to the guardian of consumer price inflation. Already the
inflation of financial asset prices was ignored, not speak of systemic financial stability, growth and
employment.
It is therefore not surprising that the ECB did not see the crisis coming. In early July
2008, when the US subprime crisis was already ravaging and some European banks such as the

German IKB had collapsed, the ECB decided an increase of the interest rate to the historic high of
4,25%. An extraordinary case of blindness of such an institution vis à vis the reality.
After the Lehmann collapse the ECB made however a surprising turn. It played the role of a lender
of last resort to the banks in trouble, although being very generous and allowing a lot of windfall
profits. The ECB also broke with some of its own rules by giving – indirectly – money to

The European Union 's Economic And Monetary Union
Abe Hannigan
Professor Wickham
POLS 120 The European Union launched the economic and monetary union (EMU) of Europe on
January 1st, 1999. January 1st of 2002 marked the establishment of a single currency through the
introduction of euro bills and coins to 12 EU states. Formally called the "eurozone", the movement
to a single currency has developed as 18 EU member states currently use the euro. Desiring further
political integration, the EMU was designed to maintain price stability through a central bank
known as the European Central Bank (ECB). Although economic certainty was the goal, a financial
crisis that erupted within the eurozone lead to questions about the credibility of the EMU. The
debate over political integration was furthered by the introduction of ideas for increased fiscal
federalism, similar to the current policies within the United States currency union. For a monetary
union to succeed, a fiscal union is necessary to solve the vulnerabilities of the EMU and supervise
national policy to prevent macroeconomic imbalances throughout Europe. However, the dispute
over political centralization impedes the establishment of such a fiscal system within the upcoming
decade. As it remains a proposal rather than a policy, interpretations of "fiscal union" differ;
however, as defined, its purpose would create a set of rules for national governments concerning tax
and budget policies essentially leading to policy coordination among EU member states. Supervised
by

The United States And The Euro Area
The United States and the euro area are the top two largest economies in the world. This paper is a
brief comparison of the central banking systems of the two economies. The paper starts by
introducing historical background for the two central banking systems to be established. It then
continues to analysis similarities and differences between two central bank system's organizational
structures. Moreover, the paper will also compare monetary policy frameworks of the two systems
in terms of monetary policy making organization, objective, transparency, accountability, and
strategies.
History
The Federal Reserve System In 1791, U.S. Congress established the First Bank of the United States,
headquartered in Philadelphia in response to the rapidly inflated paper money "continentals".
However, Congress refused to renew the bank's charter in 1811 because many Americans then were
uncomfortable with the idea of a large and powerful bank. By 1816, the idea of a central bank was
once again aroused; by a narrow margin, Congress agreed to charter the Second Bank of the United
States. But the Second Bank's charter expired in 1836 without a renewal neither. During the Free
Bank Era (1836–1865), risks of financial crisis accumulated. In 1893, a banking panic triggered the
worst depression the United States had ever seen, and in 1907, a bout of speculation on Wall Street
ended in failure, triggering a particularly severe banking panic. On December 23, 1913, President
Woodrow Wilson

The Should A Solitary Currency For Europe Has Come From...
The need to have a solitary currency for Europe has come from the following six major factors.
Firstly, the Post World War II, European Union (EU) was established in the year 1957, to have a
trade market that is common for all its constituent nations. This soon gave way to the need of having
a joint currency among EU nations, as it was realized that individual currencies caused too much
fluctuation risks and sustain exchange costs (European Central Bank, 2010). Secondly, the EU
needed to have a more powerful presence in the world economy, and an established common stable
front in terms of currency, was the pathway to the right direction. Thirdly, the markets of all the
European countries needed to get a joint and steady platform for ... Show more content on
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Financial markets would get a more integrated outlook, and this would encourage trade flow and
investments in the European Union. Finally, apart from fiscal reasons, the euro was also intended to
bring about a closer co–operation among the fellow nations, and present a concrete identity for the
union of European nations.
The main advantage highlight since the Euro establishment has been the following. Firstly, smaller
nations like Malta and Cyprus have been added into the EU and have seen the success brought in by
Euro, in terms of increased revenue from tourism, enhancement in prices of the property, and overall
financial benefits to the economy (De Santis, 2012). Secondly, European Central Bank has
monitored the inflation and volatility in prices quite well, and has nearly achieved the stability of
2% inflation rate increase, that it had originally aimed for. This steadiness is also reflected in the
long term interest rates that are much less volatile across the Euro zone (De Santis, 2012). Thirdly,
euro has given a major boost to the European economy by increasing the market competition within
the zone, with more transparency in all transactions, giving the entire zone an aura of stability. It is
currently the second currency in the world that is most traded, after the US Dollar. Fourthly, on a
micro–economic level, the benefits have been seen in the form

Brief History Of Bel Implex Nigeria Limited
PART TWO
2.1 BRIEF HISTORY OF BEL IMPLEX NIGERIA LIMITED
Bel Implex Limited, the converting arm of Bel Papyrus Limited, the group's paper mill operation
was incorporated by Group Boulos in 2001. Bel Implex is equipped with the best European
converting machines. However, Bel is currently producing and distributing several lines and sub–
brands of tissue paper such as: facial tissue, toilet tissue, baby wipes, table napkins, kitchen towel,
handkerchiefs and diapers.
Due to the quality of its products, Bel has maintained an eminent reputation and its market shares
grew constantly and steadily over the past years through an efficient distribution network's
everlasting commitment to fulfil the customer's needs and meet their every expectation.
Nevertheless, in order for Bel to increase their shareholders' worth by creating exchanges that satisfy
the objectives of shareholders, the German market in the EU would be the right market for growth
expansion and would also position the firm to optimise value creation (Hollensen, 2007). However,
the rationale behind this choice of country is due to the fact that customers in Germany are very
careful about hygiene compared to some of the Asian and African countries that have other
alternatives like water (Euromonitor, 2012).It is also assumed that, like the UK, many of the
products in the disposable paper market are considered to be essential by German consumers. Also it
assumed that the Germans consume 13.7kg of tissue per year

The Decision Of The European Central Bank
It is necessary to look at the state of the Eurozone economy in order to properly analyse the decision
of the European Central Bank (ECB) on September the 4th to cut its benchmark interest rate to
0.05%, and to launch an asset purchase program to buy debt products from the banks at the same
time. Since the collapse of Lehman in 2008 and the global crisis that followed, the Eurozone has
been contracting significantly to the extent where "consumer price inflation in the Eurozone fell to
0.3% in September." (BBC, 2014) The ECB's reaction has been to reduce interest rates and make
use of quantitative easing to try to generate economic growth, albeit without much success. In June
2014, when Mr. Draghi, the president of the ECB, announced its latest cuts to 0.15%, he stated that
he couldn't see the rates dropping below this level. And yet, merely a few months later, he
announced a further drop to 0.05%, in what many considered to be a desperate attempt to help pull
the Eurozone out of deep crisis. The example of Japan's 20–year struggle with deflation and a
contracting economy was the driving force that pushed the ECB to take this drastic measure.
Therefore, it is important to analyse and evaluate the decision of the ECB, set in the context of the
current European economic situation, and the alternative policies that could be used.
The introduction of expansionary monetary policy can have many impacts on an economy. One such
impact is to stimulate consumer spending and levels of

Banking On Legitimacy : Ecb And The Eurozone Crisis Essay
b. Banking on Legitimacy: The ECB and the Eurozone Crisis
This section contains a summary of the article, Banking on Legitimacy: The ECB and the Eurozone
Crisis by Kathleen McNamara, in the Georgetown Journal of International Affairs, published in
Summer/Fall 2012, Volume 13, No. 2, pages 143 – 150. The main thesis, methodology of the report,
results/findings and the final conclusion and recommendations of the articles will be addressed
below.
1. Thesis
Over the last few years, the EU has been the main focus of the world as the sovereign debt crisis
unfolds. The European Central Bank (ECB), which started out as a hyper–independent central bank
later played a more political role that is initially intended by its creators. The article discusses about
the origins and evolution of the European Monetary Union (EMU) as well as the ECB leading up to
the sovereign debt crisis in Europe.
To assess the situation, the author addresses and answers several issues about the European
sovereign debt crisis. The questions are:
How did the crisis originate?
How did it span out? What are its problems?
What was done to curb the expanding issue?
2. Methodology
To assess the situation, the author presented an overview regarding the crisis. Then the author
discusses how the crisis spanned out and the problems associated with the crisis that the European
Union faces in light of this crisis. The author also evaluates the crisis by discussing the ways to
control this issue.
3. Results

Greece Economy : The Economy Over A Period Of Three Years
a) First bailout:
On 2nd May 2010, The IMF and EU agreed to infuse 110 billion Euros in the Greece economy over
a period of three years, to avoid a default. In exchange, Prime Minister Papandreou committed to
severe austerity measures, including 30 billion Euros in government spending cuts and tax increases
on the Greek population.
On 10th May 2010, the European Central Bank (ECB) launched its Securities Market Program,
which allowed it to buy government bonds of ailing economies like Greece on the secondary market
in order to boost investor confidence and also to prevent further penetration of this problem.
Eurozone Finance ministers also agreed to implement rescue measures worth 750 billion Euros to
keep struggling Eurozone economies afloat. These austerity measures did indeed help Greece in
bringing down its fiscal deficit from 10.6% of GDP in 2009 to just 2.4% of GDP in 2011, however,
it also worsened the Greek recession as a side effect. The Greek GDP had its worst decline in 2011
with a 6.9% contraction a 28.4% lower industrial output than in 2005. As a result, Greeks lost about
40% of their buying capacity since the start of the crisis and unemployment rates ballooned to more
than 25% in June 2013.
b) Second bailout:
On 21st February 2012, EU Finance ministers and the IMF approved a second bailout for Greece,
the largest in history, worth 130 billion Euros. The deal included a 53.5% debt write down for
private Greek bondholders (A write–down is the reducing of the

The Greek Government Debt Crisis
The Greek government–debt crisis has seldom seen a break from the public eye since its first bailout
loan in 2010. With a sweeping change in political standing, the question now looms as to whether
the newly elected Prime Minister, Alexis Tsipras should pull the plug on Greece's membership in the
Eurozone. In the most part, International financial and political institutions such as the International
Monetary Fund (IMF) and the European Union (EU) are helping economic recovery in Greece.
Through a variety of implemented fiscal and social measures, Greece will ultimately be spared from
a detrimental Grexit, seeing a sound economic outcome through means of democratic legitimacy.
The IMF and EU have loaned vast sums to the Greek government, aiding in an economic recovery
for the nation. These institutions, along with the European Central Bank (ECB) and many other
creditors within the EU have set out fiscal and monetary guidelines that will see the loans be of most
use to the economy. Through poorly regulated finances, Greece was facing government bankruptcy
prior to the 2010 bailout. These funds have not only saved the government, but an entire nation. As
of the 27th of April 2015, Greek public debt stood at 320.4 billion euros (€), with a debt–to–GDP
ratio of 180.2 percent. Although this figure is astoundingly large, the policies put in place by creditor
institutions mean the debt is manageable, and will be reduced significantly over a period of years.
Austerity measures

The White Man's Burden
What was once perceived to be 'the white man's burden' has engulfed all developed nations – we're
all quixotic fools of imperialism. If you think that you've heard of 'the white man's burden' before
you're correct, it is a poetic piece by Kipling; written in 1898 for the purpose of the US (United
States). The finale verse is poignant to all: "Take up the white man's burden, have done with childish
days, the lighter proffered laurel, the easy, ungrudged praise. Comes now, to search your manhood
through all the thankless years, cold edged with dear bought wisdom, the judgement of your peers!"
If you find it deficient of beauty and description it's because the expansion of its meaning shifts in
an emporium tenor. I wish to pass this on to Alexis Tsipras.
Greece or any other Eurozone member shouldn't be a scapegoat of the failed project – Norman
Lamont and his counterparts the so called pioneers of Federal Europe are equally responsible.
I don't expect any correspondence back as I know Tsipras has a lot on his Greek plate and has the
insurmountable task of jumping through Olympic hoops for the foreseeable future, for that I offer
my deep condolence. My stance is far from engaging in 'housekeeping' idiosyncrasies on grounds
that my background allows me to distinguish what is valid in the tangible force of economics. No,
sensible economic editor would claim that a nation's monetary mechanism is anything resembling
housekeeping's expenditure. On another note, whether politics or

Elementary Facts Should Not Be Forgotten
Elementary facts should not be forgotten. When we forget the basics, the fundamental knowledge
that supports all facets of our life, we will suffer. An example of this would be forgetting that wood
cannot stand high temperatures and it will burn. Because you had forgotten this basic fact, you build
a space shuttle out of wood and when the shuttle attempts to take off, it burns up in the atmosphere.
This is what has happened with the European countries, or EU. The euro has had a negative effect
on the European economy because one simple elementary idea was forgotten. All of the sovereign
states that make up the EU are separate, with economies at different stages of life and different
policies and procedures to cope with or to combat their ... Show more content on Helpwriting.net ...
Monetary policy, which is usually managed by a central governing financial body, has become very
out of focus in the EU. This power was once held by governing bodies in each individual country,
thus allowing for them to make changes that helped their country and citizens the best. This
apparatus once allowed a buffer to radical changes in the national economy and national disasters;
which was taken away as the European Central Bank (ECB) became the single body that governs
the monetary policy and action plans of the EU (Wypolsz, pg. 239). The ECB now has to consider
all of the sovereign bodies within the EU and the power of the euro as a whole, not trying to combat
supply issues in Italy that affect their real GDP or the disasters in London that might have led to a
decline in expenditures by citizens. Looking at Graph 1 we can see the sporadic spread of
government bonds in the different countries within the EU. The graph shows the instability of the
Euro because the government bonds of each state fluctuated when Italy was rumored to be leaving
the EU, to return to their economy. This shows that the monetary policy actions of the ECB cannot
really benefit all of the EU equally. It has been noted that France and Germany have flourished best
under the euro, which is where the ECB and other bodies of the euro exist (Sheridan). Sheridan

The European Crisis And The Transformative Role Of The Emu
–How the EU responded to euro crisis and the transformative role of the EMU? That the incomplete
preparatory works in the initial period of the EU monetary establishment partly resulting in the euro
crisis, had revealed how unrigorous and incompatible mechanisms the EU institutions proposed and
conducted. There is no mechanism set up for addressing the debt crisis problem tracked back to the
time point when the euro was established, and thus resulted in the hastily drawn and agreed
emergency rescue plans, which were viewed unfavourable to the majority of EU countries as they
seemed merely synonymous with those bailouts. Based on this ambiguous and unstable solutions the
EU had provided, the worldwide disappointing impression had been created on the split opinions of
the larger countries that offered the loans regarding how best to save the crisis. In consequence, the
crisis had been prolonged along with the increasingly weakened EU confidence in international
markets due to the lack of decisive action. (Harari, 2014) As the most principle stance in EU
monetary architectures, the EMU has experienced an incredible institutional transformation under
the tremendous pressures not matter from the EU or national levels. In Dyson's (2000) observation,
the EMU's actual effects on European states began from 1 January 1999. However, the process for
putting its conditions in place can be traced to the European Monetary System (EMS) in 1979, since
when the specific

The Pros And Cons Of The Euro Crisis
What went wrong in the Euro Area?
The Maastricht Treaty in 1991 set some rules the countries had to fulfill in order to be accepted in
the EMU.
 1.Price stability
 2.Interest rate level
 3.Exchange rate stability
 4.Government deficit
 5.Government debt
The beginning
A slowdown in the US economy in 2008 caused European banks that had invested heavily in the
American mortgage market to lose money. But the cost of bailing out the banks hit very hard. In
Ireland, it almost bankrupted the government until fellow EU countries stepped in with financial
assistance.
The recession
As Europe slipped into recession in 2009, the problem began to affect governments more and more,
as markets worried that some countries could not afford to rescue ... Show more content on
Helpwriting.net ...
The banking crisis significantly contributed to the state of current affairs, but it's not enough to say
that that was the only reason why all of this happened.
Purposes of the Eurozone
A single currency offers many advantages, such as eliminating fluctuating exchange rates and
exchange costs. Because it is easier for companies to conduct cross–border trade and the economy is
more stable, the economy grows and consumers have more choice. A common currency also
encourages people to travel and shop in other countries.
But the Euro is not just a currency, it's an expression of a political ideal. The main architects of the
Euro Zone were the German chancellor Kohl and the French president Mitterrand: when in 1990
West Germany and East Germany wanted to reunite, the USA and the Soviet Union were favorable,
whereas Britain and France feared a new German dominance would begin, so they suggested to put
the new re–unified German economy under European control, thus the idea for the

Why The Uk Should Join The Eurozone
A question reviewed on numerous occasions, weather the UK should join the Eurozone, considering
what a currency union intakes, the benefits and costs, a judgment can be entailed weather the
Eurozone would be a valid investment for an economy such as the UK. Exchange rate, capital risk,
interest rates or any monetary policy and fiscal policies, shall be taken in to account when formation
a judgment to weather the UK should become a member of the Eurozone. The heart of this case is
revolved around interest rates and to whether it shall cause a great impact on the financial sector of
the economy, as the UK largest revenue resource is from there banking sector.
A currency union is where more than two economies share the same currency, without having any
additional economic and monetary union, in which resulting in a single market and custom union.
The Eurozone is the economic region formed by those member countries of the European Union that
have adopted the euro. (Perry, S. 1994).
Optimum currency union is a theory published by Mundell in 1961, the theory is used to debate is a
certain area has the requirements to become a currency union, one of the final stages in economic
integration, in which a monetary unions benefits compensate the costs.
Some of the criteria for an optimum currency union are high capital and labour mobility, which
allows capital and workers to move freely through different areas of the union. Wage and price
flexibility through different areas, allowing

Economic Development Of The European Central Bank
Introduction
After near–zero interest rates have failed to stimulate economy, the European Central Bank finally
announced the launch of quantitative easing programme with purchase of €1.1 trillion in assets.
Compared to conventional monetary policy, this large–scale asset purchase programme aims to
expand the amount of money circulating in the economy to boost spending and thus bring inflation
rate back to 2%. However, considering imbalanced economic development, inconsistent fiscal
policy and bank–oriented financing structure in the euro zone, this unconventional policy might not
be as effective as expected.
The purpose and channels of quantitative easing
After the financial crisis in 2007, the global economy went into a recession and ... Show more
content on Helpwriting.net ...
The asset purchase plan delivers news to the people that interest rates will remain low for a longer
period of time. Since low interest rates indicate positive economic prospect in sluggish economy,
they might raise people's confidence in spending. (2) Asset price. After the central bank initiates
quantitative easing plan, the sellers of purchased bonds are likely to buy other bonds to rebalance
their portfolio, raising the price of purchased bonds and other bonds and thus bringing down long–
term interest rates. The reduction in cost of borrowing attracts people and business to borrow more,
increasing domestic demand and creating jobs (Bank of England, 2011). (3) Exchange rate. After a
decrease in bond yield due to the asset purchase plan, a large proportion of investment capital might
be transferred out of the country implementing QE, along with a large–scale sell–off in currency.
The currency depreciation encourages exports, which improves the country's current account. (4)
Bank lending. When the central bank buys bonds directly from the bank, balance sheet size of the
bank remains unchanged but some portions of bonds are replaced by reserves. When the central
bank buys bonds directly from non–bank institutions, the bank's balance sheet will be expanded and
the bank can gain new reserves and deposits. These two scenarios both provide liquidity to the
commercial bank, encouraging it to extend loans (Roche, 2014).
Quantitative easing in the euro

Greece's Relations With Greece Case Study
Subsequently months after being out of the limelight, Greece has just returned to the forefront as an
imminent reimbursement deadline on its latest consignment of rescue–package loans. Greece's
relations with Europe are in a delicate state, and quite a lot of it is significant. The origins of the
existing emergency were propagated over 20–30 years ago, and the present condition is just the
indication of the essential complications that have not been fixed. Basically, Greece was jammed in
an inflationary spiral which would only remain in the absenteeism of trials undertaking the original
difficulties facing the Greek economy. Greece became the focus of the dues after the catastrophe of
Wall Street crumbled in 2008. In 2009 it was said that ... Show more content on Helpwriting.net ...
European power of control authorized about 7.5 billion, or $8.4 billion euros in bailout money for
Greece. The bailout money is allowing Greece to pay their monthly bills, which came at the prefect
time. This is because Europe has been dealing with the influx of migrants and continuing terrorist
threats. Germany has also come into play with this problem because they believe that Greece still
cannot make their budget. A solution has been reached for Greece's creditors to commit to debt
relief, through 2018. Europe's crisis has really shown how nations will come together to protect their
own. In the Europe Union, most of the decision–making involves politics. They have 28 national
governments', where each one includes voters and tax payers. This has also caused much tension
since January 1999, when the euro was introduced. This had caused 19 nations to use a single
currency, but allows each country to control budget and tax policies. Some minor solutions that
international banks and foreign investors have taken were to sell their Greek bonds and other
holdings. They did this so that they would no longer be vulnerable to what happens in Greece.
Greece's debt crisis Another solution would be if Greece decided to leave the Eurozone. This was
thought about because at the height of the debt crisis experts believed that Greece's problems would
affect the whole world. If Greece defaulted on its debt and exited the

The Financial Crisis Of Greece
Over the 15 years the German has been widely viewed as the economic catalyst and stabilizer for its
fellow European Union states. Even following the Financial Crisis in 2008, the German economy
was able to bounce back quicker than neighboring Eurozone states the source of German success
points to a high export led growth economy with a competitive manufacturing sector, lower
unemployment, balanced budget, and low costs to borrow. With most economic indicators pointing
to strong future growth, it remains to be seen whether a spillover effect occurs to the rest of the EU.
Despite a number of reforms, EU countries continue to suffer due to lack of global competitiveness.
In dire straits, Greece continues to leverage the support of the European Central Bank and Eurozone
states to avoid another financial collapse. In support of Greece, Germany itself lent the country €56
billion, however Germany has begun to lose patience over Greece's attempts to renegotiate terms of
its bailout. As the German economy has persevered through economic turmoil, while Eurozone has
struggled, Germany continues to be a shining light of prosperity in the European Union.
Profile of German Economy As the largest economy in Europe, Germany has rebounded from the
global crisis unlike any other country. Germany's success stems from a strong export sector, low
unemployment, strong housing and manufacturing sectors and a balanced budget. Prior to the crisis,
Germany implemented a set of structural reforms

Advantages And Weaknesses Of The Greek Economic System
3. Define the Greek economic system (Capitalism/Communism/Socialism/mixed system) and state
how the way they organise their factors of production contributed to the current situation.
Greece has a capitalist economic system. According to J Janse Van Rensburg/C McConnell/S Bruce,
Economics Southern African Edition page 34,
Capitalism economy system is characterized by the private ownership of resources and the use of
markets and prices to coordinate and direct economic activity. Individuals and businesses seek to
achieve their economic goals through their own decisions regarding work, consumption, or
production.
The system allows for the private ownership of capital, communication through prices and
coordinates economic activity through markets ... Show more content on Helpwriting.net ...
Many Eurozone banks hold "periphery" bonds and many analysts are concerned that they do not
have sufficient capital to absorb losses on their holdings of sovereign bonds should one or more
Eurozone governments default or restructure their debt. The crisis has also triggered capital flight
from banks in some Eurozone countries, and some banks are reportedly finding it difficult to borrow
in private capital markets, causing some investors to fear a banking crisis in Europe that could have
global repercussions."
As a result of that the EU had to re–evaluate their financial systems, the international financial
structure and monetary system. Therefore they formed a European Financial Stability Facility
(EFSF) in May 2010 try to help those countries that were badly hit by the recession and were
struggling to repay their debts.
The EU's economic response after setting up the EFSF
After the EFSF bailed out couple of countries including Greece, they decided to find and use a long
term strategies in order to enhance liquidity in the EU banking system and there are couple of those
rescue solutions:
European Central Bank (ECB): Sustainable fiscal policies by all the EU members and the
punishment for those members that do not comply with the

MINI CASE2 Benefits And Costs Uk Essay examples
MINI CASE 2: Will the United Kingdom Join the Euro Club?
When the euro was introduced in January 1999, the United Kingdom was conspicuously absent
from the list of European countries adopting the common currency. Although the previous Labor
government led by Prime Minister Tony Blair appeared to be receptive to the idea joining the euro
club, the current Tory government is clearly not in favor of adopting the euro and thus giving up
monetary sovereignty of the country. The public opinion is also divided on the issue.
Whether the United Kingdom will eventually join the euro club is a matter of considerable
importance for the future of European Union as well as that of the United Kingdom. The joining of
the United Kingdom with its ... Show more content on Helpwriting.net ...
Besides, UK can attract many investor s from others because it has a plenty of advantages such as
abundant productive workforce, independence of the monetary and flexibility in labor market. Price
transparency is also a potential benefits for UK. There is a severe competition between local firms
about their price of goods. And it's absolutely a positive advantage for costumers in choosing goods
with a reasonable price. Some companies can minimize their production costs with a cheaper price
of their materials. Furthermore, UK can improve the inflation performance. In UK, CPI is allowed
to increase up to 3% but in Euro, its targeted inflation is close, but not more than 2%. The last but
not least, it is rising importance of Euro. Nowadays, Euro currency plays an important role in
international trade. And it can be able to replace dollar one day in period of globalization. Because
there are more and more other potential members participate in Euro club. Thus, this ensures that the
Euro's economy is much larger than US one. The instability of dollar and rising national debt in US
also affect to dollar currency.
About costs of adopting euro, initially UK has to face to the sensitivity of changes in interest rates.
Because house ownership in UK is the highest in Euro club, any changes in interest rates can rapidly
impact their economy. Secondly, adopting euro is constraint the

The European Monetary System ( Ems )
The Euro was launched as a single currency electronically on 1 January 1999 in 11 European
Monetary Union (EMU) member countries (Austria, Belgium, Finland, France, Germany, Ireland,
Italy, Luxembourg, Netherlands, Portugal and Spain). However, the origins of its conception go
back to the launch of the European Monetary System (EMS) in March 1979. The EMS was created
with the goal of currency stability and low inflation across Europe via an Exchange Rate
Mechanism (ERM) that was based upon a quasi–currency, the European Currency Unit (ECU),
which represented the weighted average value of member countries' currencies (European Central
Bank, 2014).
In 1991, the 15 members of the European Union met in Maastricht, Netherlands, to set up a ... Show
more content on Helpwriting.net ...
The European sovereign debt crisis refers to the ongoing crisis that has affected countries of the
Eurozone since 2009 when a group of 10 central and eastern European banks requested bailouts and
a 1.8% decline in EU economic output was forecasted by the European Commission (Wagstyl,
2009). The crisis has posed great difficulties and even impossibilities for some EMU members to
repay sovereign debt without the external assistance in the form of emergency loans ("bailouts")
from the ECB or International Monetary Fund (IMF). Examples of this include Greece and Ireland
in 2010, Portugal in 2011, Spain in 2012 and Cyprus in 2013 (UK Parliament, 2014).
Some of the causes of and factors that have exacerbated the crisis include a misperception of risk
leading to rising national debt levels, trade imbalances, structural issues with the Eurozone system
and monetary policy inflexibility.
The adoption of the euro led many EMU countries of different creditworthiness receiving similar,
very low interest rates for government bonds and private credits during the years preceding the crisis
due to the inherent belief in investors that the euro would induce endogenous economic convergence
in the Eurozone. In 2005, ECB President Jean–Claude Trichet claimed that yields on Eurozone
sovereign bonds were driven overwhelmingly by "euro–area–wide shocks" and there was only a
small effect from

Germany Market : The Market For Growth Expansion
Nevertheless, in order for Bel to increase shareholders worth at to create exchanges that satisfy the
objectives of shareholders the Germany market in EU is the right market for growth expansion.
However the rationale behind this choice of country is due to the fact that customers in Germany are
very cautious about hygiene compare to some of the Asian and African countries that has order
alternative like water and it is assumed that many of the products in the disposable paper market are
considered to be essential by consumers as in the UK. In other words, the industry has certain
degree of buoyancy despite tough market conditions and since the time of recession just like in the
times of economic growth people usually do not charge the amount of hygiene products they use
like in the UK were customers cut down expenses on the amount of tissue due to the recession
(keynote 2014).
However, disposable paper market is the fastest–growing industry players in Europe this stands as
an opportunity for Bel Implex because the product is still in its maturity stage in Germany(euro
monitor 2014).. Basically, since the euro is higher than the Nigeria currency this means more money
will be brought into the country which makes it a good business location for Bel Implex.
Nevertheless, from the indicators of business environment in 2014 Germany in the 21th position at
of 189 in the business rank for firms who is seeking to have international presence (euro monitor
2014).Germany is the most

What Is The European Union?
What is the european union The EU is a different type of state –it isn 't a legislature, a relationship of
states, or a worldwide association. The 28 Member States have surrendered some portion of their
power to EU organizations, with numerous choices made at the European level.
The European Union has conveyed over 60 years of peace, soundness, and success in Europe, raised
our natives ' expectations for everyday comforts, propelled a solitary European coin (the euro), and
is logically fabricating a solitary far–reaching free market for merchandise, administrations,
individuals, and capital.
They are occupied with remaking lives and groups in zones of contention, for example, Afghanistan.
They claim that they aim to accomplish peace ... Show more content on Helpwriting.net ...
At the point when the EU was established in 1957, the Member States focused on building a 'typical
business sector ' for exchange. In any case, after some time it turned out to be clear that closer
financial and money related co–operation was required for the inner business sector to create and
thrive further, and for the entire European economy to perform better, bringing more occupations
and more noteworthy flourishing for Europeans. In 1991, the Member States endorsed the Treaty on
the European Union (the Maastricht Treaty), choosing that Europe would have a solid and stable
coin for the 21st century.
The advantages of the euro are various and are felt on various scales, from people and organizations
to entire economies. They include:
More decision and stable costs for purchasers and residents
More prominent security and more open doors for organizations and markets
Enhanced financial strength and development
More incorporated money related markets
A more grounded vicinity for the EU in the worldwide economy
An unmistakable indication of a European personality
A considerable lot of these advantages are interconnected. For instance, financial solidness is useful

for a Member State 's economy as it permits the administration to get ready for what 's to come. Be
that as it may, monetary steadiness likewise advantages organizations since it diminishes
vulnerability and urges organizations to contribute. This, thusly, advantages natives who see more

The European Union, A Common Currency, The Brexit, And The...
Introduction
The European Union was formed with many expectations. Despite closeness and similarities, the
various nations of the European continent fought bitter wars for thousands of years within
themselves. After the devastating World War II, finally everyone saw the light and decided to give a
chance to a peaceful coexistence. However, the EU's path has not been smooth. Many critical
economic as well as political problems have emerged throughout the last decade, raising questions
about its credibility.
Two primary questions need to be explored here,
1. What are the most serious challenges in front of the EU at present?
2. How are these problems going to affect the credibility of the EU?
In this essay, I argue that the EU has failed, given the controversial issues that arise at present,
namely viability of the Euro as a common currency, the Brexit, and the migrant crisis from the
Middle East.
Euro as a Common Currency
The viability of Euro as a common currency here will explicate the financial crisis in the Eurozone
countries to prove that the EU has failed. Before World War II, doing trade across borders is
difficult. Countries need to pay a fee to exchange currencies, before a tariff fee is then executed
when trade between companies of two different countries are involved. This eventually had stifled
the economic growth. After WWII has ended, the situation among the European countries is so dire
that they have to call for a unification process in order to hasten the

United States Economic Financial Crisis
Throughout the years, different events occurred and influenced the global economy positively or
negatively. For example, the oil crisis in the '70s negatively affected the economy just as bad as the
Gulf War did in 1990. On the other side, the end of other wars had a positive effect on the economy,
for example World War 2, which boosted the stock market and ended the Great Depression. When
multiple negative effects occur at the same time, or when crises last for a long time allowing other
negative effects to surface, crises tend to last longer and prevent a pick–up in growth.
The current economic–financial crisis was indeed caused by the simultaneous occurrence of events
in different parts of the world that all had a negative effect. These events are subtly different and
therefore it is common that only one event is held responsible for the crisis. In reality, the world
economy became critical due to the mix of four major events: 1) the unrestrained greed of financiers
in the U.S. and U.K., which transformed bad mortgages into toxic financial assets 2) the habit of
getting deeply indebted in the U.S. and U.K., 3) the excessive liquidity in Europe, 4) the real estate
bubble in the U.S. and some European countries (Thomas, 2011) At the beginning of the financial
collapse in the United States, many commentators, among which was the President of the Federal
Reserve, hastily affirmed that the situation would only affect the United States and at most, the UK,
where the banks,

Germany's The European Central Bank
In this essay, I will argue that Germany has captured the European Central Bank (ECB). The ECB
sets monetary policy for the Eurozone, which includes all nineteen countries that uses the Euro.
Monetary policy, according to the Keynesian Phillips Curve, can either pursue low inflation or low
unemployment. Using this assumption, to prove my hypothesis that Germany has captured the ECB,
I will provide evidence such as what German policy compared to Eurozone policy compared to ECB
policy, and how the charter of the ECB promotes German interests, and newspaper articles that
show how Germany is perceived in other European countries.
To first understand if the European Central Bank has been captured, we should recognize what
capture would look ... Show more content on Helpwriting.net ...
Traditionally sovereign countries control both their own monetary and fiscal policy. Eurozone
countries now directly control only fiscal policy, which affects spending and taxation. They leave
monetary policy, how to react to inflation and unemployment, in the hands of the ECB. Capturing
the ECB would grant the captor, Germany, specifically German politicians, more tools to keep their
constituents content. Capture would provide a strong economy for the captor, which every German
citizen would want. Finally, capture of the ECB allows Germans to present themselves as not–Nazis,
not–hegemons, and as dedicated to European stability. For all of these reasons, capture of the ECB
benefits Germany, and would encourage Germany to seek capture. The first form of capture I
mentioned was control of the Governing Council, especially the Executive Board, of the ECB.
Germany has not done this. The evidence, a list of the nationalities of the members of the Executive
Board shows that the President of the ECB is from Italy, and the Vice President is from Portugal
(Europa – European Union). Two Germans do serve on the Executive Board, but three (including
the governor of the German Central Bank) out of twenty–five is not a majority. This does not mean
that Germany has not captured the ECB.
I believe that the mission of the

Bel Implex Nigeria Limited Management
PART TWO
2.1 BRIEF OVERVIEW OF BEL IMPLEX NIGERIA LIMITED
Bel Implex Limited, the converting arm of Bel Papyrus Limited, the group's paper mill operation
was incorporated by Group Boulos in 2001. Bel Implex is equipped with the best European
converting machines. However, Bel is currently producing and distributing several lines and sub–
brands of tissue paper such as: facial tissue, toilet tissue, baby wipes, table napkins, kitchen towel,
handkerchiefs and diapers.
Due to the quality of its products, Bel has maintained an eminent reputation and its market shares
grew constantly and steadily over the past years through an efficient distribution network's
everlasting commitment to fulfil the customer's needs and meet their every expectation.
Nevertheless, in order for Bel to increase their shareholders' worth by creating exchanges that satisfy
the objectives of shareholders, the German market in the EU would be the right market for growth
expansion and would also position the firm to optimise value creation (Hollensen, 2007). However,
the rationale behind this choice of country is due to the fact that customers in Germany are very
careful about hygiene compared to some of the Asian and African countries that have other
alternatives like water (Euromonitor, 2012).It is also assumed that, like the UK, many of the
products in the disposable paper market are considered to be essential by German consumers. Also it
assumed that the Germans consume 13.7kg of tissue per year

Should Greece 's Debt Soon Be History?
Greece has many historical aspects such as the acropolis where many polytheistic worshipers came
to worship the Gods, the first Olympics, as well as the first democracy, however one question that
the whole world is asking is "will Greece's debt soon be history"? The prime minister, Alexis
Tripras, is unwilling to pay of the billions of euros of its debt. Germany and France has loaned
billions of euros and are now trying to create a plan to solve this problem. The International
Monetary Fund, European Central Bank and other organizations have declined all of Greece's
request for more loans. Although the majority countries in the world have debt, Greece has been
loaned billions of euros from many european countries, the EU, and other international
organizations; this is a problem because this country is doing all in its power to accept more grants,
unwilling to give the overdue credits back.
Greece has accepted billions of euros in loans gratefully; they have done this by convincing Europe,
if not the world, that their economy if thriving. Greece has accepted 360 billion euros in loans. 3
billion euros were given to the country by the Italian Generali Group. 9.2 billion euros in grants
from Germany companies such as Commerzbank and FMS Wertmanagement. 11.9 billion euros
from French corporations such as CNP Assurances, Groupama, Societe Generale, and BPN Paribas
were loaned. Greece banks loaned their government 70.6 billion euros; these companies include
Marfin Group, Alpha

The Economic Crisis Of 2008-2009

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