ECON 314 Lecture Notes - Lecture 21: Global Saving Glut, Eurozone, The Need
24 Jun 2019
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Document Summary
Read the piece on mycourses about the debt crisis in. Describes a situation in which desired saving exceeds desired investment. Connected to the global financial crisis and the search for yield. "the consumer boom was built on the unreliable foundation of rising house prices and that corporations were waiting for housing prices to level off or decline before they were willing to invest rather than save. " Performs limited tasks, somewhat like a central bank. Set up by a groups of countries in a common currency zone. Bank that coordinates the financial activities of smaller banks within countries. Subsidiary bank of a central bank within a country. Used when countries want to use a currency of another country (ex. Zimbabwe using the usd as part of its domestic currency) Regulates activities ands capital inflow that comes into a country. Usually countries that receive a lot of outside capital use these institutions (ex.
