Current Banking Crisis (last 12 months)
As the headlines in today 's newss all around the world show , there is a global economic slowdown . Economies all over the world are being plunged into what is tentatively being called Recession ' While there are those who believe that this is simply an expected trend given the rapid growth of the global economy , it still does not detract from the fact that it is an urgent and pressing problem . In to address this problem , several governments have issued massive bail-outs and laws designed to manage the system . In line with the principles
of Keynesian Economics , it seems that the government is the only player capable of solving this problem . It is this government intervention through the Federal Reserve , led by Ben Bernanke , that is touted as the solution to the country 's , if not the world 's , economic problems
According to Anne O . Krueger , First Deputy Managing Director of the International Monetary Fund (IMF , the key to the resurgence of the banking industry lies in raising the potential growth rate of the economy . Structural reforms-reforms that make the economy more flexible that permit individuals and firms to respond to incentives more rapidly and more flexibly-will raise the economy 's growth potential . More rapid growth , sustained over a long period , will raise living standards and reduce poverty
The current economic crisis that has rocked the global economy has prompted many countries to take drastic measures in to deal with the situation . The Federal Reserve and the National Treasury...
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