SYDNEY & KUALA LUMPUR, Jul 30 (IPS) - Ten years ago, deteriorating confidence in the value of US sub-prime mortgages threatened a liquidity crisis. The US Federal Reserve injected considerable capital into the market, but could not prevent the 2008-2009 global financial crisis (GFC).
The 2008 meltdown exposed the extent of finance-led international economic integration, with countries more vulnerable to financial contagion and related policy ‘spillovers' exacerbating real economic volatility. It also revealed some vulnerabilities of the post-Second World War (WW2) US-centred international financial ‘architecture' – the Bretton Woods system – modified after its breakdown in the early 1970s.
Read the full story, “Global Economy Vulnerable a Decade After”, on globalissues.org →
from Global Issues News Headlines https://ift.tt/2vdFMZ6
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