economic infographics
The making of The Europe Financial Crisis
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Trouble sprung up quickly in Europe after the global crash in 2008. In 2009, a new government in Greece discovered that it couldn’t pay off the debt it had incurred. That would be disastrous for those who made the loans to Greece—largely European banks, which own $71 billion in Greek debt and also have many commercial loans in the country. If those banks had to write off those assets, it would spur a financial crisis with cascading repercussions across the globe, increasing pressure on other European countries and financial institutions at a time of already fragile growth. The U.S. wouldn’t be exempt: Our financial institutions own plenty of European debt, and the Euro zone is our largest trading partner. Many economists believe the initial stages of the Greek crisis helped slow economic recovery in the United States.
Thus began the last two-plus years of back-and-forth in Europe, as Greece came close to default and was halfheartedly bailed out in 2010 by other members of the Euro Zone. The group is led by Germany, a country that makes fiscal rectitude a watchword, and the European Central Bank, as fiscally conservative an institution as there is. Both are reluctant to offer much help the more profligate European countries unless they adopt austerity policies by raising taxes and cutting spending, which in turn hurts growth and has brought on popular demonstrations in Greece against the government and European institutions.
source : Good. Business |
Central Bank Interest Rates by Country: Country Comparison
via chartsbin.com
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This map shows the central bank current interest rates by country.
What is Central Bank?
A central bank, or reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on printing the national currency, which usually serves as the nation’s legal tender.
What is Central Bank Current Interest Rates?
The current interest rate is the rate at which commercial banks can borrow money from the central bank. The interest rates are used by central banks to shape monetary policy. Central bank interest rates are one of the most effective tools to promote growth and keep inflation under certain limits.
America vs Developed Economies: Credit Rating Comparison
THE maths underlying the downgrade of America’s sovereign debt by Standard & Poor’s may or may not have been lop-sided, but it is true that the country’s debt burden does not compare well with those of other countries that still get AAA ratings. The attention of the markets has turned to France and, in particular, its banks (whose shares are now covered by a ban on short-selling). Yet France would appear to have more room for manoeuvre than America does. ( source : Economist .com )
A brief guide to the issuance of AAA-rated debt
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| WHERE can investors spooked by wild swings in the equity markets go for a little rest and recuperation over the summer? The Swiss franc is one answer. Gold has its fans too. But a more mainstream solution to the problem is AAA-rated debt. But hold on: the biggest issuer of this paper by a long way is the American government, which only last week seemed on course to unleash chaos by failing to raise the debt ceiling. Then come two European governments, France and Germany, who issue their debt in a currency that some think is on the verge of breaking up. More sanguine types think that Germany will only be pushed into acting as finance minister to the rest of the euro zone when markets start to question its own AAA rating. |
source : Economist
COMPARISON CHARTS 