European Financial Crisis - 1172 Words

Short paper report of EBE: â€Å"European Financial Crisis† [pic] Rob van persie IBMS PT 2009 Preface This report has been written as an assignment for IBMS student. I have chosen to research European financial crisis; which has underlined the difficulty of taking concerned action in Europe because its economies are far integrated than governing structures. My research was focused the world crisis but especially the financial crisis between European countries and the inconvenient for the rest of the world. Working on this report develops our knowledge about financial markets and business environment itself. It was challenging and interesting project. And also because, Mr. Rene van der Linden gave us the†¦show more content†¦They are also adopting fiscal measures to stimulate their economies and wrestling with failing banks. The financial crisis has demonstrated that financial markets are highly interdependent and that extensive networks link financial markets across national borders, which is pressing EU governments to work together to find a mutually reinforcing solution. Unlike the USA, where the federal government can legislate policies that are consistent across all states, the EU process gives each EU member a great deal of discretion to decide how they will regulate and supervise financial markets within their borders. We have to test this system as the EU and others search for a regulatory framework that spans a broad number of national markets. Governments that have expended considerable resources utilizing fiscal and monetary policy tools to stabilize the financial system and to provide a boost to their economies may be required to be increasingly more inventive in providing yet more stimulus to their economies and face political unrest in domestic populations. Conclusions and recommendations I can make a conclusion by saying that in EU area, there is a need to avoid protectionism in all its form, which can only exacerbate the effects of the crisis in the longer term. Also there must be sufficient liquidity in financial systems at the national, regional and globalShow MoreRelatedThe European Financial Crisis : The Monetary Crisis3268 Words   |  14 Pages2015 ECON 1312-6 The European Financial Crisis The European financial crisis has been an economic struggle for quite some time now. Because Europe’s economies are interdependent, when one gets out of balance the others are affected as well. One can argue, that the growing current account imbalances within the Euro area indicates an ongoing process of economic divergence rather than convergence. This is the foundation for why this debt crisis has been so difficult to solve. 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