Macro economics Research Paper Example | Topics and Well Written Essays - 1000 words

Macro economics - Research Paper Example To understand the European Debt Crisis, the events leading up to 2009 must be thoroughly analyzed. On February 7th, 1992 the 13 member nations of the European Council gathered together to sign the Maastricht Treaty The purpose of the treaty was to lay out key financial rules for each member state to adhere to, with the long term goal being that of creating a union between the member states promoting economical growth and free trade. The treaty primarily encompassed four points: Firstly, a close monitor on inflation rates, ensuring that no member state was 1.5 percent higher than the average of the three best countries' rates. Secondly, tight regulation on the annual government deficit. Thirdly, member states would adhere to the currency exchange rates set by the European Monetary System (EMS). Finally, the nominal long-term interest rate should not be more than two percentage points higher than in the three lowest inflation member states. While all 13 members signed, at the end of 20 10 only four countries were able to abide by the policy for Government Debt. In essence, the members of the European Council were spending far more than they were bringing in. The inability for the European countries to manage their debt was the leading cause for the European Debt Crisis. (Arghyrou & Tsoukalas, 2011). ... The creation of the Euro in 1999 was a vehicle to ease trading between its member countries and therefore benefit their economies. The countries that were joined through the Euro were Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. After these countries were united, countries such as Greece were able to take advantage of the lending rates of 1-3% compared to previous rates of 6% or more. Banks lowered their rates as a result of their connection with countries like Germany. The banks reduced their rates on the basis of â€Å"tacit promise†, if Greece could not repay the loan, Germany would. The same rates were additionally offered to Portugal, Italy, Ireland, and Spain. Between 1999 and 2009 Portugal, Italy, Ireland, Greece and Spain, (PIIGS) with their new access to low interest rate loans, took on huge amounts of debt to fund the activities of their countries. This inflow of cash from the loans generated a f alse sense of prosperity in the countries created a 'bubble'. The loans to the countries were issued in exchange for Sovereign Bonds. When Greece announced it had financial difficulties it had a drastic impact on the sovereign bonds that were owned by the banks. The news led to an increase in the bond yields to above 7% indicating that the bond was distressed. As a result of Greece relying on deficit spending to cover their debt, issuing bonds was the only way they could manage, however, with the huge decline in their bond value they are currently not able to raise enough funds to stay solvent. In April of 2010, the Troika—the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission (EC, the executive arm of the European Union)—structured a bailout

Assesed Assignment Essay Example | Topics and Well Written Essays - 3000 words

Assesed Assignment - Essay Example RS suggested to AM that the court do not look favourably upon parents who just want to keep on fighting; clearly that sort of behaviour is detrimental to the children. Children’s Wishes and Feelings AM seemed to be of the view that he had a right to see his children; RS explained that contact is always for the benefit of the children – they have the right to contact if it is in their best interests. The CAFCASS officer, Mrs Smith, recorded in her report that the children were mature enough to understand the dispute. Simon and Lily made their decisions clearly and eloquently that they did want to see AM although wished their grandmother to be present throughout contact. They also desire to continue living with their mother. AM believes that his wife has ‘poisoned’ Simon and Lily against him and that is why they have told Mrs Smith that they wish to remain with their mother and have supervised contact. RS explained to AM that this is not the issue – th e child psychologist confirmed that the children have suffered harm. Evidence RS explained that the court will hear AM’s evidence and he will have his say, albeit unrepresented, although the court will also hear from Mrs Morris and the instructed expert’s recommendations. ... The reasons given in the report were that the children are settled with Mrs Morris in their home and at their school. Mrs Smith believes that they may be at risk of harm if they did not live with their mother. AM strongly objected to the suggestion that he had harmed his children. RS drew AM to Mrs Smith’s report where she states that she has seen the evidence in Mrs Morris’ statement, the casualty report, GP report and neighbour`s evidence which all support Mrs Morris’ statement of domestic abuse. This of course, hinges on the issue of the injunction which does not look favourably upon AM. We are confident that we will be able to show that it is in Simon and Lily’s best interests for residence to be granted to Mrs Morris. Contact RS attempted to negotiate a contact arrangement that is in the best interests of the children. RS suggested contact be supervised in accordance with the recommendations within the CAFCASS report, taking into account the childrenà ¢â‚¬â„¢s wishes and feelings. Simon and Lily would be happy with their paternal grandmother being present during contact. RS made AM aware that the Local Authority are stating that they would become involved with the family if the children were to have anything other than supervised contact. RS asked AM if he had any suggestions of his own for contact. He suggested weekends and overnight stays at the weekend. *see below Supervised Contact heading. RS proposed that Mrs Morris take the children to AM’s mother’s house and she will take the children to AM’s house for 3 hours on a Saturday between 1pm and 4pm. AM stated that he would agree if he could pay half of the child support he currently pays and that the injunction