The European Economic and Monetary Union
The European Economic and Monetary Union (EMU) is an agreement between participating European nations to share a single currency, the euro, and a single economic policy with set conditions of fiscal responsibility. Since the euro entered in circulation in 2002, the European Union has become more and more powerful. However, in 2008 when the economic crisis dramatically started with a huge bank investment from the bank in the United states of America “Lehman Brothers », “Lehman Brothers Holdings Inc was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA, doing business in investment banking, equity and fixed-income sales and trading (especially U.S. Treasury securities), market research, investment management, private equity, and private banking. On September 15, 2008, the firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in its stock, and devaluation of its assets by credit rating agencies. The filing marked the largest bankruptcy in U.S. history, and is thought to have played a major role in the unfolding of the late-2000s global financial crisis.” http://en.wikipedia.org/wiki/Lehman_Brothers. Unfortunately the European Union had to face complex conflict. In this essay, we will pinpoint the benefits and the challenges of the EMU in the light of the current economic crisis.
“The financial crisis that hit the global economy since the summer of 2007 is without precedent in post-war economic history.
At present, governments and central banks are well aware of the need to avoid the policy mistakes that were common at the time, both in the EU and elsewhere. Large-scale bank runs have been avoided, monetary policy has been eased aggressively, and governments have released substantial fiscal stimulus.
Large-scale bank runs have been avoided, monetary policy has been eased aggressively, and governments have released substantial
“The financial crisis that hit the global economy since the summer of 2007 is without precedent in post-war economic history.
At present, governments and central banks are well aware of the need to avoid the policy mistakes that were common at the time, both in the EU and elsewhere. Large-scale bank runs have been avoided, monetary policy has been eased aggressively, and governments have released substantial fiscal stimulus.
Large-scale bank runs have been avoided, monetary policy has been eased aggressively, and governments have released substantial
References: http://www.businessdictionary.com/definition/economic-crisis.html http://ec.europa.eu/economy_finance/publications/publication15887_en.pdf http://en.wikipedia.org/wiki/Lehman_Brothers