We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Causes and consequences of the 2008/09 Great Recession and how Belgium is now perfroming economically - Essay Example

Comments (0)
Summary
Running Head: Great Recession and Belgium Great Recession and Belgium Great Recession and Belgium Introduction Belgium was one of the first countries to industrialize in the early 18th century. Despite being very poor in terms of natural resources, the country relies heavily on its imports of raw materials from the world that it exports heavily to the outside world after value addition…
Download full paper
GRAB THE BEST PAPER
Causes and consequences of the 2008/09 Great Recession and how Belgium is now perfroming economically
Read TextPreview

Extract of sample
Causes and consequences of the 2008/09 Great Recession and how Belgium is now perfroming economically

Download file to see previous pages... 301-302, 2010). However, lately, Belgium has been going through one of the worst periods in its economic history due to the great recession who has torn the economy apart since the 2008 and still there appears no immediate and definite light at the end of this tunnel. This paper is a brief attempt to explore the causes and consequences of this recession on Belgium with focusing on macroeconomic variables of GDP, inflation, unemployment and exchange rate. Discussion It was during the first half of 2006 that the economists of United States became sure that the country was actually suffering from a liquidity crisis and was heading towards a recession. Amongst many reasons, which trigged this recession were the subprime mortgage crisis, unethical accounting practices, bursting of housing bubble, too easy credit conditions, failure of Lehman brothers and others (World Bank pp. 85-89, 2011). More importantly, this crisis had nothing to do with the European countries but all of these countries imported this recession from US during the year 2008. Considering the high dependence of Belgium trade and other sectors on the US, it was evident that eventually, the country was going to catch this recession disease. Furthermore, as mentioned several times later in the paper, that the mounting public debt of Belgium acted as stimulus to further worsen the situation. According to the reports from the fall of 2010, Belgium debt has gone on to touch the level where it is has become equal to the total national income (Elliott & Cole, pp. 301-302, 2010). The point, which is important here to understand, is that at least in the next couple of years, there is no possible way in which Belgium could improve its economic condition and show any GDP growth. Considering the debt of the country, high unemployment, inflation, bailouts and on top of it, the Eurozone crisis, even if a miracle happens, Belgium would only be able to contain the damage and remain at the same level (Goethem, pp. 36-37, 2011). In order to make matters even worse, a caretaker government for more than the past 400 days is currently governing the country. The caretaker government has only the authority to take urgent decisions and cannot interfere in other matters. Therefore, the current government will only do firefighting, which it will be doing with full force in the coming months and cannot engage in any activities, which could be aimed at fire prevention (World Bank pp. 85-89, 2011). This will even make the situation worse because now, the government needs to take some very important decisions, which would include devaluing its currency to increase its export bill since the volume has gone down, aim at balancing the deficit, and buy more time with lower interest payments and other important steps. Even if the new government comes as early as today, it will take its time before it could implement its decisions and before those decisions and stimulus could produce any visible ground results. Moreover, as mentioned earlier that much of the portion of the GDP of Belgium depends upon the exports of the country. Quite understandably, the volume of the international trade and even the dollar value has decreased significantly over the past few years and considering the slow rate of the recovery, it will take time before the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Federal Reserve Actions during the Great Depression in 1929 and 1930, and the Global Economic Recession of 2008 and 2009
Federal Reserve Actions during the Great Depression in 1929 and 1930, and the Global Economic Recession of 2008 and 2009 Introduction The global economy has changed in various periods in history. Changes in global economy are interesting since they affect different continents in the world.
14 Pages(3500 words)Essay
The Great Recession 2008
The research highlights that the impacts of the crisis as diverse beyond the aggregate of the rising levels of unemployment and economic collapse, highlighting the differences in transmission channels, vulnerability of economies, and initial conditions, as well as the role played by government policy in dealing with the crisis.
12 Pages(3000 words)Term Paper
Stress: Causes and Consequences
The author defines the ways to deal with stress and mitigate its negative health effects. The consequences of stress can contribute to relationship problems and other social maladies. Excessive stress manifests itself in a diverse range of negative consequences, including anxiety, anger and depression.
8 Pages(2000 words)Essay
The 2008 Financial Crisis: Causes and Consequences
The financial crisis refers to the situation in the financial economy, when the value of the assets and institutions goes on losing their value at an increasing rate all over the world. The study is also concentrated on the genesis of the 2008 financial crisis which involves the disastrous circumstances that occurred in the United States as well as in other parts of the world.
7 Pages(1750 words)Research Paper
Causes and Consequences of the Great Depression
The news of the free falling value of stock spread across globally, setting off events that culminated in economic failure worldwide. The Great Depression occurred the decade prior to the World War II. It also occurred one decade after the culmination of the First World War.
7 Pages(1750 words)Essay
The 2008 Financial Crisis: causes and consequences
Because of this, the international coverage of the crisis had also been remarkable. This paper discusses in detail the 2008 financial crisis focusing on the causes as well as, the final consequences. It is worth noting that poor financial policies were a major category of the probable causes of the 2008 financial crisis.1 Notably, major weaknesses were exposed within the national stretching beyond the international financial regulatory body frameworks.
5 Pages(1250 words)Essay
GREAT RECESSION/GREAT DEPRESSION
The measure of trend of these periodic fluctuations is measured in terms of the levels of employment and production. When the measure indicates a down trend, then it is referred to as recession. This downward trend causes a decline in the spending of households.
5 Pages(1250 words)Essay
Economical changes during 2008-09 financial crisis
The global financial market is heading towards a collapse if necessary measures to resolve financial crisis is not taken by the authorities, not only in US but also in other countries facing the same situation. The present paper is
7 Pages(1750 words)Essay
How the global financial governance should be reformed in the aftermath of the global financial crisis in 2008-09
Developments are traced through the gradually and increasingly liberal banking legislations, to the present, The next section provides a perspective on the causes of the crisis,
18 Pages(4500 words)Essay
The Implications of the Great Recession of 2008 on U.S. Unionization
In this respect, a recession was unprecedented. Hetzel (2012) attributes the great recession of 2008 to extreme risk taking by banks. Within a very short time, banks were able to create money by means of issuing
6 Pages(1500 words)Essay
Let us find you another Essay on topic Causes and consequences of the 2008/09 Great Recession and how Belgium is now perfroming economically for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us