The fiscal crisis in Greece is attributed to a situation of economic fiscal profligacy that is attributed to begin as early as 1980s when an upward trend in public debt began. The situation of fiscal profligacy was facilitated by the presence of deep-rooted corruption and…
Download file to see previous pages...
First, the Greece government is responsible for allowing a weak political system that resulted to the mismanagement of domestic economy thereby contributing to the additional government debt at an incredible rate (Georgios, 2010). Compared to other Eurozone economies, this debt rate was very high. Secondly, the financial market especially the credit rating agencies were myopic in their prediction of the US sub-prime mortgage loan crisis of 2007. Consequently, the attempts to unveil potential sovereign debt crisis led to an overreaction and the country’s large budget deficits made the economy a target. Lastly, there was a fair part of the blame on the delayed reaction of the European Central Bank by the Eurozone governments particularly Germany (Georgios, 2010).
Based on history, financial crisis tends to result to sharp downturns economically, low revenues for the government, government deficits that keep widening, high debts levels, and the pushing of government into defaults (OECD, 2013). A recession also results to high unemployment levels, falling average incomes and increased inequality. In the course of a recession, there is a fall in GDP that results to increased unemployment. Unemployment is attributed to firms going bankrupt hence most workers losing their jobs, and firms failure to hire new employees in the aim of reducing costs. In addition to not hiring new employees and reducing the number of employees, recession forces organizations to reduce costs which then translate to low wages especially the temporary workers (OECD, 2013). Reduction of costs amongst firms is also as a result of high costs of living that see most workers have their real wages cut. Fall in tax revenue is also another result of recession since firms make less profit that translates to low corporate tax; employees receive low income that result to lowered income tax; and lower expenditure result to lower VAT payments. Lower VAT payments were experienced in Greece during 2011
...Download file to see next pagesRead More
Cite this document
(“Perspectives on Macroeconomics Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1632532-perspectives-on-macroeconomics
(Perspectives on Macroeconomics Assignment Example | Topics and Well Written Essays - 1000 Words)
“Perspectives on Macroeconomics Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1632532-perspectives-on-macroeconomics.
Pre-eminence of US Dollar 8 2.1.2. The Role of US Dollar 11 2.1.3. US Dollar: Functions and Current Stature 13 2.1.4. Benefits that Accrue to US Dollar as the Preferred International Currency 18 2.2. The Debate 21 2.2.1. The Return of the Triffin Dilemma 21 2.2.2.
[872,914+ 205,063+ 327,682+ 386,648- 418,671] million = ? 1,373,636 million ii. The growth of GDP from 2008 to 2009 is [(1,373,636-1,408,839)/ 1,408,839]*100 = -2.5% (approximately) iii. The UK is running trade deficit in both of the years as exports are lower than imports in 2008 as well as in 2009.
However, emerging countries, which were considered vulnerable are exhibiting a remarkable resiliency, and growth seems to point to the pre-2008 breakout levels. In essence, the performance exhibited by the emerging countries is viewed as a significant engine of expansion in regard to the present global economy (Lachman 64).
GDP measures specifically the total income and the total production of a nation. GDP is calculated by combining consumption, investment, government spending and net exports of a nation. It is important to note that GDP counts only
Trough is a period of stagnant economic growth. Recovery is the above-average economic growth period while the peak marks the highest level of economic growth in which the economy is at full employment. NBER defines
b. To be able to restore the economy to full employment; the government must find ways that it promotes local businesses. When local businesses experience a high demand from their products they increase their labor
It is in this stage when children learn about their bodies by gratifying physical curiosity as they explore and undress each other.
During this stage of development, a child has various demands and needs including the need of an infant to nurse among