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

Eurozone Economy - Book Report/Review Example

Comments (0) Cite this document
Summary to book report/review on topic "Eurozone Economy"
The article taken talks about the macroeconomic issue in which tells us that European Central Bank or ECB has decided to cut the interest rate. The interest rates will come down to 1%. According to the article, this was the fourth time in 9 months that this action has been initiated by the European Central Bank (ECB)…
Download full paper
Polish This Essay
Eurozone Economy
Read TextPreview

Extract of book report/review "Eurozone Economy"

Download file "Eurozone Economy" to see previous pages... However, Bank of England was most interested in buying the government bonds rather than corporate bonds. European central bank also decided that it would lend unlimited credits to banks for a period of up to 1 year. The major motivation behind taking this action was the reason that troublesome economic crisis were experienced in the euro zone.
Let us write or edit the essay on your topic "Eurozone Economy" with a personal 20% discount.. Try it now
However, many economists argued that they see that actual economic recovery is still far away and this was an interim method to damage-control the convalescing economies of the countries which come under euro zone. It was further stated by the Bank's president that there is a chance that interest rates will go down further as the bank tries to achieve its macroeconomic aims.
This article relates to the macroeconomic side of the economics studies as it talks about the economy as a whole. In particular, the topic discussed under this article is monetary policy which ECB is using as a tool to revive the fallen economies of various euro zone countries. Monetary policy is deliberate manipulation of interest rates and money supply in the economy to fulfill the desired macroeconomic targets. ) the rate of Interest: This is one of the most basic approach by which the government regulates money supply in the economy. ...
Ceteris Paribus, An increase in the rate of interest will make people save more and spend less because they think that their money is earning high rate of interest. Similarly, an increase in the money supply increases the cost of loans and people spend less. This reduces the money supply in the economy. Similarly, when interest rates decrease the exact opposite happens and money supply in the economy increases.
Open-Market Operations: In this method, the sale and purchase by central bank in the security market has desired effect on the money supply in the economy. For e.g. an increase in the purchasing by the central bank in the security market increases the amount of money that people has and it increases the money supply in the economy. Similarly, selling of these securities in the money market dampens the people buying power and reduces the money supply in the economy.

APPLICATION:
In this case, as it is discussed the major economic concern is the plummeting demand in the economy, decrease in interest rates are going to decrease the cost of borrowing and now people would borrow more and spend more in order to maintain their standard of living. Since, interest rates are lower than inflation in the current scenario, if people keep their money in deposit account their money will lose value and hence people will prefer to spend now than save in order keep the purchasing power of money stable and hence there will be more demand in the economy. This will increase the aggregate demand in the economy, which in turn will boost the employment level in the economy and more will be produced resulting in both economic growth and GDP. This will, theoretically, rev up the economy and will help ...Download file "Eurozone Economy" to see next pagesRead More
Cite this document "Eurozone Economy"
  • APA
  • MLA
  • CHICAGO
(“Eurozone Economy Book Report/Review Example | Topics and Well Written Essays - 750 words”, n.d.)
Eurozone Economy Book Report/Review Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1500897-eurozone-economy
(Eurozone Economy Book Report/Review Example | Topics and Well Written Essays - 750 Words)
Eurozone Economy Book Report/Review Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1500897-eurozone-economy.
“Eurozone Economy Book Report/Review Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1500897-eurozone-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Eurozone Economy"
Utopian Economy and Markets
Most interesting was the fact that it promoted excludability as the goods purchased by one consumer becomes consumer’s exclusive item which cannot be consumed by others, even if the consumer does not use it.
3 Pages(750 words)Book Report/Review
Political Economy of International Trade
Primarily, trade is an exchange of goods and it involves many factors such as policies and trade regulations. The exchange of goods can occur within a country or goods transported into another country—international markets. In the later, we refer to this as international trade.
8 Pages(2000 words)Book Report/Review
Issues In Global Economy
Asset liquidity is mainly a measure of the ability to convert the asset into money once a money demand arises. Global liquidity is mainly enabled by the IMF and other international funding institutions according to Landau J. P (2011), private banks and other financial institution control the liquidation rate through the changes in the interest rates and commercial assets.
4 Pages(1000 words)Book Report/Review
The Political Economy of Modern Iran
It also describes the 'pseudomodernist despotism' of Reza Shah and the 'petrolic despotism' of his son. He also shares his views, in a short epilogue, on the 'pan-Islamic zealots' who have taken power since 19791 Born in 1942, Homa Katouzian studied economics in Britain and gained a PhD before teaching the subject in Britain, Iran, Canada and the United States.
4 Pages(1000 words)Book Report/Review
Global Economy
The discussion reveals that rapid growth and economic convergence are not what globalisation has trailed even then and that of the current time. Rather, Nayyar argues that the gap between the industrialised and developing nations widened through the globalisation trend with growth slowing down and income levels diverging.
18 Pages(4500 words)Book Report/Review
Sustainable economy
mited to the political realm and on the other, the world has not yet been able to design and evolve viable institutions for global governance, especially on the economic front. With the UN and its Secretary-General having become no more than figureheads and the credibility of
4 Pages(1000 words)Book Report/Review
Political Economy of Race, Class and Gender
The events of the 2012 killing of Trayvon Martin, a black teenager has served as an epitome of the racial injustice that is prevalent in today’s economy. It is worth noting that the killer, George Zimmerman, a white belonging to the privileged class acted out of
1 Pages(250 words)Book Report/Review
Political Economy of Race, Class and Gender
Under the household economy, households utilize own capital and labor hours to produce services for own consumption. The Gross Economic Production of a given economy is given as the sum of Gross Household Production and Gross Market Production. This paper
1 Pages(250 words)Book Report/Review
Global Political Economy Outline & Presentation
The author identifies a number of mutually dependent characteristics that stakeholders should change to enable the initiation of reforms. The system is a centralized planning, implemented administratively through the issuing of detailed and extensive coordinating
1 Pages(250 words)Book Report/Review
Political Economy of Race, Class and Gender
So far, these groups have been successful in enlightening the public on acceptable working conditions and labor practices as well as wrestling significant concerns from the
1 Pages(250 words)Book Report/Review
Let us find you another Book Report/Review on topic Eurozone Economy 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