[The Affects Of Recent Global Financial Crisis On Eurozone Model]

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of recent global financial crises in a holistic context. The main focus of the research is on the affects of recent global financial crisis on Eurozone model. The research also analyzes many aspects of the affects of recent global financial crisis and tries to gauge its effect on the Eurozone model.

Table of Contents

CHAPTER 1: INTRODUCTION8

Background of the Study8

Research Aims and Objectives8

Hypothesis/Research Question12

Significance of the Study12

Rationale/ Nature of the study14

Effect Of Monetary Policy In The Real Economy (Money, Interest And Liquidity)15

The Curve Of The Preference For Liquidity16

Incidence Of Public Spending In The Real Economy17

CHAPTER 2: LITERATURE REVIEW20

The Evaluation Of The KKE Ten Years Ago21

KKE Assessments On The Current Global Economic Crisis24

How Did The Crisis Took Place?27

How Serious Is The Crisis?28

What is expected of the economic crisis for the Eurozone?29

CHAPTER 3: METHODOLOGY31

CHAPTER 4: DISCUSSION AND ANALYSIS33

A Different Crisis? Now And Then33

Vulnerability To The Euro Zone Crisis37

Possible Scenarios43

Brace for Impact!44

CHAPTER 5: CONCLUSION48

The Fronts Of Struggle49

REFERENCES52

List of Figures

Figure 1: US dollars to 1 euro, May-Oct 201135

Figure 2: Cross-border bank lending40

Figure 3: Fiscal balance in 2007 and 201041

List of Tables

Table 1: Major trade partners for Least Developed Countries, 2007 and 201038

Table 2: Vulnerability of selected low-income countries to the euro zone crisis41

Table 3: Transmission mechanisms, possible solutions, effects on developing countries42

Table 4: Trade dependence of low-income countries on selected European countries45

CHAPTER 1: INTRODUCTION

Background of the Study

The crisis in the living world economy is a consequence of the methods of production and expansion of the capitalist system. It 'also of a structural nature and not just as financial claims to prove. It also includes other crises, such as energy, food and the climate. The current situation threatens humanity, which is why people must take action quickly. The current financial situation is a reflection of an economic model in which the best way to earn profits is financially speculate than to produce real goods. This lasts until the bubble does not explode, as has happened on this occasion. This fact is not a cyclical crisis of capitalism, even if the current one is much more profound than the inevitable overproduction that capitalism has within it, this global crisis means the explosion of an economic model that has stopped production, generating unemployment and increasing poverty.

Research Aims and Objectives

Already in crisis before the great speculative economic groups and banks had found new fields of speculation to continue to do great business. The crisis of today had already begun to herald the wars for years ...