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
crisis in the future is we are not careful today. The energy prices will sky rocket and not be available for many individuals or countries. To avoid this doom scenario we need to find alternatives and used them to their full potential. Luckily this is already happening.
The second problem is that the fossil fuels that are widely used today are harmful for the environment. In the early seventi
2. The problems of PIIGS
PIGS, the original acronym, referred in 1997 to Portugal, Italy, Greece and Spain. Similar terms, such as "the Olive Belt" or "Club Med", have also been used for the same or similar groupings of countries in southern Europe. The term became popular again during the financial crisis of 2007–2010 when the economies of Portugal, Ireland, Greece and Spain were seen a
crisis solution, exchange rate management and financial policy coordination within the IMF have been designed to perpetuate the dominance of a few industrial countries, specifically the USA and the European Union member states. That is, the IMF lending decisions is a result of American policymakers and countries in which American banks are highly exposed and the governments closely allied with th
crisis :
- Real estate values rose
High current deficits was risen simultaneously
in many countries
- Extraordinary levels of leverage used
The financial crisis were influenced by global imbalance :
Asians accumulated foreign reserves for better future (Saving Glut)
- Saving Glut influenced interests rate of developed countries to be low
Many methods of investment wer