Category: Economy

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Quick Analysis On The Euro Crisis

quick analysis

In the year 1992, a single currency for all European Union Counties, the Euro was conceived as a concept. During 2002, 19 out of the 28 member countries in the EU started using Euro as their official currency. The main reason for adapting to this currency is for economic prosperity and political union. However, for the past ten years, Euro has suffered a severe debt crisis, stagnant economy resulting in people losing their jobs. This has resulted in more disharmony and issues in many countries.

analysis1

One of the new principles was that markets will achieve new employment strategies and efficient methods if governments could allow them to. One of the main roles of a government structure is to come up with measures that can fight against inflation and maintain a balanced budget. The EU membership places restrictions on the deficits and debts for the government as well.

Money rushed into countries like Spain resulting in inflation and increased prices. Germany managed to correct the situation by bringing down the prices. Germany did not increase the prices and deflation is very difficult to deal with than inflation. Whenever money is borrowed, they have to pay it back more in the Euro currency. This caused furthermore disturbances that were difficult to handle.

analysis2

Countries having trade surplus should take strong actions to inflate the economy at the part with weaker countries. Surplus countries will impose charges on weaker countries. Trade deficits also cause problems. To fix this, the surplus countries must reduce their prices in line with the weaker countries they are trading with.

If one country started looking at an exit referendum similar to that of Brexit, markets will respond with more capital flight than it is right now. This will result in a huge banking crisis. The political and economic effect this will have will be very complex to deal with.

Read more : Some Bright Spots In The Housing Category

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Some Bright Spots In The Housing Category

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After a very long time, the housing sector in the United States is looking healthy. Young people are looking to get their own houses which have resulted in home builders working hard to meet their needs.

July 2015 saw more sales in the home than in ten years. Home buyers bought family houses at the rate of 654,000. This is the highest price since October 2007 which is a 31% high than the previous year. The numbers could vary and it includes a small margin for error as well. Even keeping them aside, the housing market is on its way to growth and is looking to become great by 2016.

Home builders are looking at new housing units with a target of 1 million homes a year after April 2015. During spring 2009, the total sales were 478,000 homes only. The increase in real estate has resulted in a positive effect on the overall GDP of the country since the last eight quarters. There are some really good signs in the home pricing category as well.

For a very long time, the housing market has been suffering and builders were looking to see how they can ramp-up their production and increase sales. The numbers are now an example that housing is slowly catching up for better performance.

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