20 years: Trading & hedge funds
Whereas monetary policy in Europe leaned significantly in the direction of largesse, fiscal policy was more tightly constrained. In this video, Trevor explains these fiscal constraints and analyses the causes and effects of these policies.
Whereas monetary policy in Europe leaned significantly in the direction of largesse, fiscal policy was more tightly constrained. In this video, Trevor explains these fiscal constraints and analyses the causes and effects of these policies.
8 mins 54 secs
The emphasis on fiscal austerity and tight monetary policy had been undertaken on behalf of the creditor, to protect against their mistakes in lending. This caused an economic stranglehold, nearly continuously since July 2007, curtailing economic growth and placing banks in a fragile condition.
Key learning objectives:
Identify the views of creditors and debtors on the austerity measures
Who was to blame?
Identify the fiscal constraints imposed on European countries
Understand the impact of austerity