Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Response To Euro Crisis Add in library

54 Download3 Pages 529 Words

Question:

Describe about the response to the major financial crisis that took place in European Union region?

 

 

Answer:

Response to Euro Crisis

In response to the major financial crisis that took place in European Union region, both the banking system and the supervisory structure of the region took stern measures to put in corrective checks. However it can be debated whether the measures were adequate and what more or different could have been done in the prevailing situation. The debt crisis exposed structural weakness in some of the countries of the region, primary being the unsustainable levels of both public and private debt. The financial crisis was also able to expose the systematic shortcomings in the detailed architecture of the monetary and economic union in the region.  National Governments of the region along with institutions took slew of measures to safeguard the financial stability and also to strengthen the architecture of the institutions (Arezki, 2011).

The complexity of financial integration in the Euro zone and the significance of the same cannot be decoded without understanding the complex structure on which the Euro zone is standing. The establishment of the single currency in the region followed by the Governance structure leads to formation of contagion on the whole region even if the small part of the whole region is making trouble (Ruffert, 2011).

Capital markets and reactions on release of financial statement

Capital market reactions are one of the major indicators, but it is a not the right place to play with. It is a secondary market and hence will react to any information released by the company be it financial performance or details about accounting policies. Announcements which are perceived to maximize shareholders value is considered to be positive and hence share price rise, however announcements which erodes shareholders value tend to have negative impact on the stock prices. However it is not in the interest of the company to twinkle with such information’s to gain returns in the stock market as it is against the CPA code of conduct. Information about the organization should be presented as is to the shareholders and the transparency in the system is considered to be of prime importance. The structure of The European Union and its banking structure is based on the framework that each member country will support the existence of the other in times of crisis. However in the current situation countries like Germany which have healthy GDP to debt ratio are financing the needs of country like Greece and Spain which are struggling in the region. This has led to rise of the question whether the structure is good enough to survive the down time.

 

References:

Crown Vs Clarke. (1927). Retrieved September 17th, 2014, from https://www.australiancontractlaw.com/cases/crown.html

HPC Benefit. (n.d.). Retrieved Sep 9th, 2014, from https://www.hpcwales.co.uk/the-importance-of-supercomputing-skills-to-economic-growth

Lease Accounting. (n.d.). Retrieved September 22, 2014, from FASB: https://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175826961313&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=429861&blobheadervalue1=filename%3DLEASES2.ED.0001.PATRI

Relation, E. I. (2014). Retrieved August 29th, 2014, from https://www.elderslimited.com/investor-centre

OR

With time, MyAssignmenthelp.com has become one of the best college essay writing services. Our all rounded services give students the confidence to overcome assignment related issues. Our services are fast enough to meet most urgent deadlines. We are capable of delivering fast essay writing services with the help of our specially designed provisions and writers' teams. Our urgent essay help services guarantee most rapid delivery of assignment solutions. Some of our most popular essay services are application essay help, exploratory essay help, literary review essay help and argumentative essay help.

Most Downloaded Sample of Management

278 Download1 Pages 48 Words

Toulin Method Of Argumentation

You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
202 Download9 Pages 2,237 Words

Consumer Behavior Assignment

Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
368 Download13 Pages 3,112 Words

Internet Marketing Plan For River Island

Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
328 Download9 Pages 2,203 Words

Strategic Role Of HR In Mergers & Acquisitions

Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
357 Download7 Pages 1,521 Words

Relationship Between Knowledge Management, Organization Learning And HRM

Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
Next
Free plagiarismFree plagiarism check online on mobile
Have any Query?