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World economic crisis ,eurozone and its currency
Assignment on English for economic purposes ivInstructor: Theodora Tseliga Academic year:2013-2014
Anastasios Papanikolaou 2492 (G.L.)Sevastianos-RafaIl Nikitas-Streicher 2477Konstantinos Koutlas 2430Katerina Tzereme 2531
TABLE OF CONTENTS
1.Introduction 2.World crisis 2.1 The effects of the global crisis
in the European union 2.2 What led to the European crisis? 3.Euro as common currency 3.1 Positive and negative aspects 4.Future prospects 5.Conclusion
1.INTRODUCTION
What is a crisis ? Crisis is a period of time in which a system doesn’t function properly, signaling the need for help What is an economic crisis ? Economic crisis is a length of time that the economy functions poorly. The value of economic organizations is very low,production is very low and sometimes it doesn’t meet the level of demand
2. WORLD CRISIS
Started in 2008 in the US Causes of the financial crisis:1)The real estate bubble in the US2)The collapse or the risk of collapsing for some financial institutions (e.g. Lehman Brothers,Bear sterns) What caused the housing bubbles in the US
? 1) Low interest rates in the US 2) Big increase of savings from rising economies
2.1 THE EFFECTS OF THE GLOBAL CRISIS IN THE E.U.
Fiscal deficits and debt continuous increase
Unemployment increase Discontent among the citizens
2.2 What led to the European crisis ?
Opening the boarders to third world countries
The flourishing of free competition Different expectations and
requirements between countries that are members of the European union
These are the main factor that led to the european crisis
3.EURO AS COMMON CURRENCY
Euro was Invented in 1999 Now 17 of 28 countries use it as their
currency More than 330 million people in
europe use it as their currency
3.1 POSITIVE AND NEGATIVE ASPECTS
POSITIVE ASPECTS
The lack of exchange rates between countries which have euro as their currency makes the exchange of products easier
Consumers are able to compare the real value of products
Enhances the feeling of unity among europe
NEGATIVE ASPECTS
As countries don’t have their own currency they lose the option of a devaluation.
There are difficulties in dealing with different problems at the same time with the same policy
It is easier for the crisis and bank panic to be spread among Eurozone
4.FUTURE PROSPECTS
FUTURE PROSPECTS
Besides the uncertainty significant progress has been noticed
Developing economies have started to contribute in the effort to exit the crisis
Although unemployment is beyond 24% in some countries of the eurozone it is said that within a decade it will drop to 16%
By analyzing the causes of the crisis in depth eurozone is made stronger and less vulnerable to future problems
5.CONCLUSION
After the crisis people became more careful with their investments
Citizens became more careful in their political choices
Eurozone’s main target is to strengthen the weaker economies and keep the strong economies at the same level