1. Introduction
"Europe's crisis is all about the north-south split."
Alan Greenspan, who was the former U.S. federal Reserve Board (FRB) Chairman, said the situation of Eurozone Crisis as follows. Due to high savings rate and low inflation, northern european countries have been known for frugal countries before the Euro appeared. On the other hand, southern European countries had low savi
of profit.
(그는 상당한 이익을 남겼다.)
(9) commitment : 책임. 약속
You should keep the marriage commitment.
(결혼 서약을 꼭 지켜야 합니다.)
(10) dealership : 판매 대리점
Hankuk motor company expanded dealerships in Cheju-island.
(한국 자동차 회사는 제주도에 판매 대리점을 확장했다.)
(11) treaty : 조약
The president of the c
mortgage repayments
Bankruptcy of financial company
Relief loan to financial institution by US government
US government aid more than 10,640million dollars for financial institution
US government prime the pump to improve the economy Many
US government was trying to boost their economies with extra spending
systematic enforcement of exit strategy
-Discussion about exit strategy is
of housing industry, increase of sub-prime admission rate with growth of housing industry worked as obstacle that blunted function to control the market by monetary policy.
Failure to extinguish early House price bubble and thus macroeconomy went worse.
FRB had enforced to raise the policy interest(1%-5%0 17times, but late Tight Money Policy had little function to control liquidity because of m
of 13.5% (1981)
plunged to 3.2%(1983)
Therefore, steep increase of interest rate put people
with housing loan unable to redeem their loan
US government prosecuted 1800 executives of bankrupted S&Ls
Government also enacted ‘Financial Institution Reform, Recovery and Enforcement Act’ to persecute moral hazard
Strong attitude of the administration convinced tax