The global economic crisis caused by the Covid-19 pandemic is not simple to deal with, nor is it easy, because for the first time in peacetime both demand and supply are being affected at the same time in the affected economies». All economists worldwide are revising their estimates of the magnitude of the economic downturn …
Tag: ECB
How the US and the World’s Countries will avoid the Economic Armageddon caused by the Lockdown of Coronavirus Pandemic
The terrifying economic downturn that the developed economies of the world are gradually facing, especially that of the US, due to the Covid-19 (Coronavirus) pandemic is much worse than the global financial crisis of 2008 caused by the collapse of the US investment bank Lehman Brothers Holdings Inc. This is because the current crisis is …
Governments and Central Banks React while the World Economy Enters in Recession Coma
The EU last week announced that the enforced rules on budgetary discipline are being suspended in order the member-countries of Eurozone to deal drastically with the upcoming recession due to the Covid-19 (Coronavirus) pandemic. The US Senate House on March 25 approved the $2trillion fiscal package proposal of US President Donald Trump to supprot the …
The Sustainable Solution for the Eurozone Economy – Part IV
As regards the public sector expenditures on unemployment benefits and given that there will be a joint operational and centrally designed budget for the central government of the Eurozone, these costs will must be made with a combination of expenditures both from the budget of the central’s government member state and the common Eurozone budget. …
The Sustainable Solution for the Eurozone Economy-Part III
The downsizing of public sector expenditures in central government budgets will must be done by a specific methodology and depending on the range-size of the public sector of the Eurozone (EU) member country. The budgetary curtailment of the public sector expenditures of a Eurozone member country will must be done with specific policies which, depending …
The Sustainable Solution for the Eurozone (EU) Economy – Part II
The European Commission and in general the EU rightly has set specific fiscal limits on the budgets of the member states of the Eurozone through the: Treaty of the European Union, Feb. 1992, widely known as the Maastricht Treaty-December, 1991 (Source׃ EU https://europa.eu/eu-law/decision-making/treaties/pdf/treaty_on_european_union/treaty_on_european_union_el.pdf, 29/7/2015, Brussels_Luxemburg 1992), and the Stability and Growth Pact (November, 2011) (Source׃ …
The Sustainable Solution for the Eurozone (EU) Economy – Part I
The Eurozone economy in recent years has faced the problem of permanent deflation. The deflation is occurred as a result of the low levels of overall demand in the economy. The low levels of global demand in addition to the Eurozone overall demand also characterize the global economy (2019 & Q1 2020). As a result …
Trust Economics Forecast for 2020
The end of 2019 varied the forecasts and found international bond and equity markets strong and higher price levels than at the beginning of 2020. The U.S. stock market index S&P 500 rose > 28,5%. Germany’s DAX stock market index rose > 26,15%. Japan’s Nikkei 225 stock market index rose > 19,02%. China’s SSBC stock …