The document discusses the Eurozone crisis. It provides background on the formation of the eurozone and explains how countries like Greece, Portugal, Italy, Ireland and Spain (PIIGS) accumulated large debts and deficits after joining the euro. The crisis emerged as investors lost confidence in sovereign debt from these peripheral economies. Several factors contributed to the crisis, including low interest rates fueling overspending, unsustainable growth models, and banking losses. The EU and ECB have taken steps to address the crisis through monetary easing, bailout funds, and austerity policies.
This presentation explores the causes of the European debt crisis, timeline of the crisis, its extent, how it is being addressed, who is to blamed for the crisis and how it affects us.
An attempt to cover different facets of ESD Crisis . Following ppt enumerate how it all got started and draws out rationale behind the formation of EU.
This presentation explores the causes of the European debt crisis, timeline of the crisis, its extent, how it is being addressed, who is to blamed for the crisis and how it affects us.
An attempt to cover different facets of ESD Crisis . Following ppt enumerate how it all got started and draws out rationale behind the formation of EU.
Eurozone Crisis : A case study on GreeceAniket Pant
Our group was required to do a presentation for Financial Management on the Euro Zone Crisis. We took the example of Greece and did the study. Here are our slides.
This presentation analyzes the sources of the eurozone crisis, policy responses, and solutions. It also shows a debt sustainability analysis for Greece, Ireland, Italy, Portugal and Spain.
Aranca views: Europe Debt - That Sinking Feeling AgainVikas Sharan
European debt has increased either absolutely or as a percentage of GDP over the years. Aranca’s article provides overview of european debt data, net debt, eurozone inflation data, gdp growth, unemployment rate and more.
Check out the published version here: http://www.aranca.com/knowledge-center/articles-and-publications/300-european-debt-that-sinking-feeling-again
European Debt: That sinking feeling…again? | Articles and PublicationsAranca
European debt has increased either absolutely or as a percentage of GDP over the years. Aranca’s article provides overview of European debt data, net debt, Eurozone inflation data, GDP growth, unemployment rate, etc.
Eurozone Crisis : A case study on GreeceAniket Pant
Our group was required to do a presentation for Financial Management on the Euro Zone Crisis. We took the example of Greece and did the study. Here are our slides.
This presentation analyzes the sources of the eurozone crisis, policy responses, and solutions. It also shows a debt sustainability analysis for Greece, Ireland, Italy, Portugal and Spain.
Aranca views: Europe Debt - That Sinking Feeling AgainVikas Sharan
European debt has increased either absolutely or as a percentage of GDP over the years. Aranca’s article provides overview of european debt data, net debt, eurozone inflation data, gdp growth, unemployment rate and more.
Check out the published version here: http://www.aranca.com/knowledge-center/articles-and-publications/300-european-debt-that-sinking-feeling-again
European Debt: That sinking feeling…again? | Articles and PublicationsAranca
European debt has increased either absolutely or as a percentage of GDP over the years. Aranca’s article provides overview of European debt data, net debt, Eurozone inflation data, GDP growth, unemployment rate, etc.
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
Presentation of Prof. Lars Feld - The Economic Situation in EMU - Where do we...Bankenverband
GCEE Business Cycle Update, March 2018: “In the euro area, the level of indebtedness of many member states remains very high. This is particularly true of Italy where the national debt stands at over 130 % of GDP. Should financial markets lose confidence in the sustainability of public debt on account of the political uncertainty resulting from the outcome of the election, given the size of the Italian economy a return of the euro crisis cannot be ruled out. Furthermore, risks to financial stability continue to persist in certain member states due to the fragility of many banks, particularly with regard to the extent of non-performing loans.”
Project on Greece Crisis and Impact for Economic Environment of Business Renzil D'cruz
: Project on Greece Crisis and Impact for Economic Environment of Business
• financial crisis of 2007–2008
• Greek government-debt crisis
• Causes for deteriorated economic
• Tax evasion and corruption
• Unsustainable and accelerating debt-to-GDP ratios
• Impact of the Greece Economic Crisis on India
India’s Crisis Responses and Challenges
The major reasons for the recession that hit worldwide especially the US and Eurozone.
The subprime Crises, US housing Crisis with Facts and Figures and The Fix.
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Monthly Economic Monitoring of Ukraine No. 232, May 2024
Eurozone Crisis
1. EUROZONE
CRISIS
GROUP 7 (SECTION B)
GAGANDEEP PGP05067
HARSHAN PGP05068
HENNA PGP05069
JAYESH PGP05071
JOEL PGP05072
2. Introduction
PIIGS
Economies
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
A Europe without frontiers
January 1st 1999 the currencies of 11 countries were
fixed against a new currency, the Euro.
In 2002 Euro came into circulation.
Currently Eurozone has 18 members while the
European Union has 28 members.
Economic and monetary union (EMU) -18 European
Euro-zone states and 10 non-Euro states.
European Central Bank :define and implement the
monetary policy of the Monetary Union with target
of price stability (2% inflation)
Joining of Eurozone under Maastricht qualifying
criteria(1991)
Country
National Currency per euro at time
of joining
Austria 13.76
Belgium 40.33
Finland 5.94
France 6.55
Germany 1.955
Greece 340.75
Ireland 0.787
Italy 1936.25
Luxembourg 40.33
Netherlands 2.202
Portugal 200.482
Spain 166.386
3. Export dependent model: low labour cost after
labour market reforms in 2003 by Gerhard
Schröder.
Devaluation of D-mark gave a boost to exports
as compared to other euro nations.
Exports contribute about 45% to German GDP.
110
108
106
104
102
100
98
96
94
92
REER (index 2005=100)
REER below other euro zone nations gave
it export competitiveness.
Euro zone accounts for about 37% of
German exports.
50
45
40
35
30
25
20
15
10
5
0
German Exports as Percentage of GDP
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
90
1 2 3 4 5 6 7 8 9 10 11 12 13
GERMANY Spain Greece Italy
Introduction
PIIGS
Economies
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
The German Miracle
4. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
PIIGS Economy
PIIGS and other peripheral economies could borrow
at low rates after joining euro fuelling a spending
binge.
Debt burden unsustainable after 2007 financial crisis.
Ballooning budget deficits due to fall in tax receipts
and increased spending on unemployment benefits.
5.0
0.0
-5.0
-10.0
-15.0
-20.0
-25.0
-30.0
Budget Deficit
Low interest rates fuelled domestic spending
and spurred inflation in wages and goods,
making their exports more expensive and left
imports relatively cheaper
10
5
0
-5
-10
-15
-20
Current account deficit
2006 2007 2008 2009 2010 2011 2012 2013
Germany Ireland Greece Spain Italy Portugal
-35.0
2006 2007 2008 2009 2010 2011 2012 2013
Germany Ireland Greece Spain Italy Portugal
5. Southern economies have leant too heavily on
consumer spending, have weak public finances
and rely on foreign capital to supplement their low
savings.
Southern European economies racked up huge
current-account deficits in the first decade of the
euro while countries in northern Europe ran offsetting
surpluses.
Credit flows from the euro-zone core to the
overheated housing markets of countries like Spain
and Ireland.
45
40
35
30
25
20
15
10
5
0
Exports as a percentage of GDP
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Greece Portugal Italy
Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Unsustainable growth in Southern Economies
Unit Labour cost % change (1999-2013)
0 10 20 30 40 50 60
Percentage increase
Portugal Italy France Spain Germany
6. Investors considered euro-zone sovereign bonds to
be risk free.
But seeing unsustainable debt levels after the
American crisis they started demanding a premium
from PIIGS(peripheral) economies.
Refinancing of debt became impossible due to
spiraling bond yields.
European Banks had exposure to sovereign debt .
Falling confidence in banks reinforced falling
confidence in sovereigns which reinforced falling
confidence in banks.
30
25
20
15
10
5
0
10 year government bond yields
2007 2008 2009 2010 2011 2012 2013 2014
Germany Portugal Spain Italy Greece Ireland
Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Falling confidence in Sovereigns
7. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Greece's sovereign-debt crunch
Greece's mess largely thanks to its spendthrift
government and its citizens' refusal to pay their taxes.
Most generous, and therefore expensive, state
pension systems added to budget deficit 12.7% of
GDP in 2010
Current-account deficit widened to 14.6% of GDP in
2008.
Unability to refinance existing debt led to bailout
from TROIKA formed by the European Commission,
the European Central Bank and the International
Monetary Fund
0 50 100 150 200
2013
Debt to GDP ratio
Portugal greece Italy Spain Ireland Germany
8. Introduction PIIGS Economy
Low interest rates and reckless lending, abetted by dozy
regulation, pushed up land values and caused Ireland to
turn into a nation of property developers.
Property prices started sliding in 2006-07, leaving the banks
hopelessly exposed.
After the Lehmann crisis with share prices
falling,government took the fateful decision to guarantee
liabilities worth €400 billion ($572 billion) at six financial
institutions.
Growing banking losses resulted in sovereign debt crisis for
Ireland.
Unsustainable debt levels resulted in Ireland being the
second country to be bailed out.
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Ireland's housing crash
15
10
5
0
-5
-10
-15
-20
Housing Price Growth in Ireland
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
9. Budget deficit 9.4% of GDP and public debt
85% of GDP in 2009.
Contagion from Greece and slow real GDP
growth over the decade since Portugal
joined the euro zone led to the crisis.
Loss of export competitiveness and high
household debt of almost 100% of GDP.
High borrowing costs led Portugal to seek
rescue funds from its euro-zone partners like
Greece and Ireland.
4
2
0
-2
-4
-6
-8
-10
-12
Portugal GDP,BUDGET Deficit
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP Budget deficit
Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Crisis in Portugal
10. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Pain in Spain
Caught in a spiral of deepening recession, drowning banks exposed to toxic real estate and
soaring borrowing costs.
As in Ireland, the origins of Spain's debt problems were private, not public.
Debt binge by Spanish households and firms fuelled a property bubble with spain's banks being
the conduit for this private borrowing binge.
Bank bailouts and the economic downturn increased the country's budget deficit, which
reached 8.9% of GDP in 2011 and led to increase in borrowing costs.
Aid package for recapitalization of the banks was granted to spain.
Crisis in Cyprus
Global financial crisis and exposure to Greece made Cyprus vulnerable.
Decision to wipe out about 80% of the value of Greek debt that the private sector held hit
Cypriot banks very hard and eventually a bailout for recapitalization of Cypriot banks.
11. Real Italian GDP lower than it was in 2001
Low competitiveness without any option
of devaluation to boost exports.
High wage growth as compared to
productivity.
€1.9 trillion ($2.6 trillion) of sovereign debt
outstanding in 2011.
Political instability and feeble growth led
to the increase in borrowing cost.
140
120
100
80
60
40
20
0
3
2
1
0
-1
-2
-3
-4
-5
-6
Italy GDP rate
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP growth Debt to GDP
Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Italy’s lost decade in Euro
12. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Unemployment and Deflationary pressures
4
3
2
1
0
-1
-2
-3
-4
-5
Euro inflation,GDP
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Inflation Euro GDP
24
19
14
9
4
Unemployment rate
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Germany Greece Italy Portugal Spain
Youth unemployment above 50% in spain and Greece.
Deflationary pressures adding to the Indebtedness of the peripheral economies.
No fiscal leeway as need to comply with fiscal deficit target of 3% of GDP and austerity imposed by germans.
No option of devaluation while in euro to boost export competitiveness.
13. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Steps taken to tackle euro crisis:
Loose monetary policy by ECB with rates as low
as 0.05 in 2014.
Stability and growth pact focused on
monitoring member states' compliance with
the agreed targets for their budget deficits
and their public debt levels.
Permanent crisis management mechanism -
the European Stability Mechanism (ESM) with a
maximum lending capacity of €500 billion
Banking union - an EU-level banking supervision
and resolution system - has been created.
4
3.5
3
2.5
2
1.5
1
0.5
0
ECB rate
Taming the Crisis
14. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Taming the Crisis
Funding-for-lending scheme-Provided banks with €1 trillion ($1.3 trillion) of cheap three-year
variable-rate loans to avert a funding crisis.
Started with purchase of asset-based securities (ABS)—whose underlying claims are in the
private non-financial sector—and covered bonds—bonds issued by banks that are
backed by mortgages or public loans.
Austerity and budget cuts imposed on profligate nations by troika to get public finances
back into shape.
Stance taken by ECB chief Mario Draghi to do whatever it takes to save euro involving
buying sovereign bonds to give relief to bond yields of indebted economies.
15. Introduction PIIGS Economy
Country Wise
Analysis
Policies to
tackle the
Crisis
Conclusion
Other measures that should be taken:
Germany with budget deficit must increase
investment and boost consumption currently at 23%
and 18% of GDP.
Structural reforms in peripheral economies to boost
competitiveness and more fiscal leeway given to
sovereign governments instead of imposing stringent
austerity measurements.
More steps towards a banking union to break the
nexus between sovereigns and banks.
Quantitative easing i.e. creating money to buy
financial assets to stave off deflation should be done
inspite of german opposition.
1.6
1.5
1.4
1.3
1.2
1.1
1
0.9
0.8
Average Exchage rate Dollars/euro