Which of the following does NOT refer to the fundamental prerequisites of the Credit Crunch in the U.S. that led to the Global Financial Crisis? Interest rates, which were low initially, increased, so debtors were not able to pay their mortgages out. A global excess of desired saving over desired investment, emanating in large part from China and other Asian emerging market economies and oil producers like Saudi Arabia. Liberalization of banking and security regulations that caused the existence of shadow banking system in the U.S. Introduction of the euro in 2002 that became stronger than the dollar.

Which of the following does NOT refer to the fundamental prerequisites of the Credit Crunch in the U.S. that led to the Global Financial Crisis? Interest rates, which were low initially, increased, so debtors were not able to pay their mortgages out. A global excess of desired saving over desired investment, emanating in large part from China and other Asian emerging market economies and oil producers like Saudi Arabia. Liberalization of banking and security regulations that caused the existence of shadow banking system in the U.S. Introduction of the euro in 2002 that became stronger than the dollar.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 11SQ

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