What is the "doom loop" responsible for the rapid development and severity of the 2009 euro crisis?
What will be an ideal response?
The "doom loop" refers to the feedback loop that runs from private bank distress to central bank distress to further private bank distress and so on, increasing in magnitude as it goes. During the euro crisis this process was evident in several euro zone countries.
Economics
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In facilitating the transition from a centrally planned to a market-oriented economy, explain the difference between the "shock therapy" versus "gradualism" approach
What will be an ideal response?
Economics
The opportunity cost of holding money is properly measured by the rate of interest on financial assets such as bonds
a. True b. False Indicate whether the statement is true or false
Economics