Central Banks Propel Asia Markets Essay Example | Topics and Well Written Essays - 1500 words

Central Banks Propel Asia Markets - Essay ExampleThe loosening of the policy concerning the dollar came because of the slow economic momentum, a factor that prompted the mentioned economies to come to their agreement. The slow economic downturn started as early as November, therefore, an economic intervention was needed to boost the stock markets in Asia, europium and the other countries, which were included in the financing deal. Critical Analysis It is the job of policy makers to ensure that they set up appropriate policies, which will ensure that the economic system is stable and money value is not lost. The policy indicated by the above scenario indicates that the actions by major world economies in the stock market have the ability to influence financial markets in the world. The lowering in dollar financing costs by the major policy deciders in both Europe and the northernmost American continent helped to reduce the risks of global financing, which in turn adjoins investor confidence in the markets. Therefore, the resultant effect, the rise in stock markets in the Asian, American and European economies can be attributed to a rise in investor confidence in the stock market. ... expected to benefit other economies, for example, the US, Canadian and European economies witnessed an increase in the indices used in the respective countries. Critical Questions 1. How does the boosting of liquidity in one country affect the stocks in another country? 2. What are the perceived benefits of the increase in liquidity in the Asian economies? Work Cited Turner, Susan. Central Banks Propel Asia Markets, 2011. Web. December 01, 2011. Available at Portugal Hit by Downgrade and Strike summary The word Portugal Hit by Downgrade and Strike, by Kowsmann describes two major events that affected Portugals economy in the last one week. The article states that the Lusitanian economy faced a double tragedy when its debt was downgraded to junk, and a strike paralyzed operati ons in the country. The nationwide strike was occasioned by ontogenesis fears and discontent that austerity measures were pushing the country deep into recession. The second tragedy was the lowering of the countrys debt rating by Fitchs pass judgment index, an index that describes the debt-characteristic of various economies. Portugals debt rating was lowered from triple-B-Minus to double-B-Plus, which means that the country is considered an ineffective credit controller. This was caused by the countrys perceived fiscal imbalances and debt figures across all sectors of the economy. Effectively, the lowering of the rating indicates that the country is no longer investment worthy, meaning that investors will be scared away from the economy. Critical Analysis The downgrading of the Portuguese economy, accompanied by the nationwide strike is not a stand-alone factor. This is evident from the current debt