International Issue
International Economic Issues
EXEE 2108
Dr. Mohamed Aslam bin Gulam Hassan
TIME:3-4 PM
TUTORIAL 7
Prepared by: HAO SI QI EEE100711 ZHANG YUN FEI EEE100717
(a)“Euro zone crisis is dragging the world economy into wide depression in 2013”. Do you agree with the statement? Explain.
I am agreeing with the statement. Euro zone crisis is an ongoing financial crisis that has made it difficult for some countries in the euro area to repay or finance their government debt without the assistance of third parties. The adverse economic consequences of the euro include the sovereign debt crisis in several European countries, such as France, Germany, Greece, Ireland, Italy and so on. It lead to the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague eurozone countries.
In the years of 2007–2008, the global economy was hit by one of the worst financial crisis, unprecedented in history. It was caused by the sub-prime crisis in the US. Even before the world could recover completely, the Euro zone crisis has hit the global economy again. The crisis is already having an impact on the world order. As of now, nobody really knows how long the crisis will continue, and what it will damage to global economies.
Causes of the 2010 crisis in the euro zone
The downfall of the euro exchange rate against the dollar by more than 15 percent compared with the beginning of the year – amidst the ongoing global financial and economic crisis -- provoked a series of unjustified panicky prognoses about the approaching collapse of the single European currency and a new spiral of the world crisis. Indeed, one of the euro zone members – Greece – was on the brink of default in the spring on 2010, and it was only outside assistance that bailed it out. Meanwhile, the euro continued its downfall, dipping below the 1.20 dollar benchmark in early
EXEE 2108
Dr. Mohamed Aslam bin Gulam Hassan
TIME:3-4 PM
TUTORIAL 7
Prepared by: HAO SI QI EEE100711 ZHANG YUN FEI EEE100717
(a)“Euro zone crisis is dragging the world economy into wide depression in 2013”. Do you agree with the statement? Explain.
I am agreeing with the statement. Euro zone crisis is an ongoing financial crisis that has made it difficult for some countries in the euro area to repay or finance their government debt without the assistance of third parties. The adverse economic consequences of the euro include the sovereign debt crisis in several European countries, such as France, Germany, Greece, Ireland, Italy and so on. It lead to the fragile condition of major European banks, high levels of unemployment across the eurozone, and the large trade deficits that now plague eurozone countries.
In the years of 2007–2008, the global economy was hit by one of the worst financial crisis, unprecedented in history. It was caused by the sub-prime crisis in the US. Even before the world could recover completely, the Euro zone crisis has hit the global economy again. The crisis is already having an impact on the world order. As of now, nobody really knows how long the crisis will continue, and what it will damage to global economies.
Causes of the 2010 crisis in the euro zone
The downfall of the euro exchange rate against the dollar by more than 15 percent compared with the beginning of the year – amidst the ongoing global financial and economic crisis -- provoked a series of unjustified panicky prognoses about the approaching collapse of the single European currency and a new spiral of the world crisis. Indeed, one of the euro zone members – Greece – was on the brink of default in the spring on 2010, and it was only outside assistance that bailed it out. Meanwhile, the euro continued its downfall, dipping below the 1.20 dollar benchmark in early
References: 2. ^ a b Haidar, Jamal Ibrahim, 2012. "Sovereign Credit Risk in the Eurozone," World Economics, World Economics, vol. 13(1), pages 123-136, March 3 4. Euro zone crisis: Causes and consequences for the Euro-Atlantic region / Report for the Euro-Atlantic Security Initiative Commission, July 2010 – M., IMEMO RAN, 2010. – 31 P.