The Global Financial Crisis Has Caused A Massive...

The global financial crisis has caused a massive deterioration in public finances in the euro area. The 2009 recession severely curtailed public revenues and weighed heavily on the welfare state. In addition, states have boarded on bank bailouts and costly stimulus packages. In 2010, no country belonging to the euro area was able to comply with the Stability and Growth Pact (SGP). Public debt in the euro area increased from 65% to 85% of GDP between 2007 and 2010. This debt crisis was certainly foreseeable, but the difficulty with the debt of the states lies in the history that can be made for each country, notably Greece, Ireland, Spain, Italy and Portugal. In fact, all countries have followed different paths and today they are burdened with debts more or less important that have multiple causes. The common cause that has weighed in all states is the gradual weakening of economic growth. Beginning in the 1970s, with highs and lows, the euro area tends to grow less strongly, resulting in a limit on the resources of states to meet their needs. We also observe the widespread phenomenon in all Western countries and Japan, namely the demographic aging, which gives rise to additional burdens with which European states can not cheat, cease paying pensions or cease Care for elderly people who are sick and dependent. These are general factors to which are added factors such as the lack of awareness of the new competition of Asian and emerging countrie s, which affects both theShow MoreRelatedFactors That Affects The Global Economy And Its Impact On The Nigeria And Egypt Economy1568 Words   |  7 Pagesthe factors that affects the global economy and their impact on the Nigeria and Egypt economy. In 2007, the financial crisis, which later extended to the global financial crisis began in the United States of America. The origin and elements of the 2007/2012 global financial crisis have been widely discussed in the literature throughout the period. The aim of this work is to, however, try to point out the reasons and also the macroeconomic effects of the financial crisis in both countries economy andRead MoreHousing Bubble2922 Words   |  12 PagesAccording to Wikipedia a housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline. Four years into the housing bubble downturn, much of the country remains hopelessly confused about what happened, why it happened and who is to blame. 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First, the capability of firms to invest has been reduced by a fall inRead MoreAnalysis Of Ben Bernanke s Global Saving Glut View Of Global Imbalances2762 Words   |  12 PagesBernanke’s â€Å"global saving glut† view of global imbalances, the causes related to it, the possible policies applicable and its extent of reliability in comparison to other views, such as the Borio and Disyatat’s â€Å"excess elasticity† one. To well address this concept, the current account and concepts related to it will be explained with the big deficits and surpluses issues that have arisen since 1990s. Then Bernanke’s thoughts and the extent to which his view can be connected to the economic crisis willRead More1997 Asian Financial Crisis4291 Words   |  18 Pages1997 Asian Financial Crisis Angelica M. Montefalcon 4FM2 I. Introduction For about twenty years, East-Asian countries were held up as economic idols. They were hailed as the ideal models for strong economic growth of developing countries because of their high savings and investment rates, autocratic political systems, export-oriented business, restricted domestic markets, government capital allocation, and controlled financial systems. They were even stories about â€Å"The East Asian