Fiscal Crisis
Content
Introduction………………………………………………………………2
1. The production of European Crisis and the current situation…………………….2
2. The causes of European Crisis……………………………………………………4 1. The external causes……………………………………………………………...4 2.1.1Government added leverage in the financial crisis made debt burden……….4 2.1.2 Rating agencies to fan the flames boost contagion………………………….5 2.2 The internal causes………………………………………………………………5
3.The impacts on China’s trade policy…………………………………..6 3.1 European sovereign debt crisis led to the RMB was appreciated……………….6 3.2 Affect China's exports to European countries……………………………………7 3.3 With the RMB appreciation of non-US currencies, speculative capital inflows may increase…………………………………………………………………………..7 3.4 The shrink issue of foreign exchange reserves…………………………………..8 3.5 European debt crisis affect the process of global economic recovery…………...8
Conclusion……………………………………………………………….9
Reference……………………………………………………………….11
Introduction Sovereign debt, it is point that sovereign state use the national reputation as a guarantee and through the issuance of bonds, and other methods to the international community have borrowed money. Because most sovereign debt in foreign currencies to international organizations, foreign government or international loans from financial institutions. Therefore, once the debt national credit rate was turn down, a sovereign debt crisis will be product. On December 11, 2009, the Greek government disclosed its public debt was as high as 300 billion euros. It was more serious than previously published. Affected by this, the three global credit rating agencies collectively cut Greece's sovereign credit rating. Thus light the fuse Europe sovereign debt crisis. With the eurozone sovereign debt crisis spreads, the eurozone country sovereign debt problem has already become the current global hot topic. The Greek as the leader of the "European countries" (PIIGS) sovereign debt crisis
Introduction………………………………………………………………2
1. The production of European Crisis and the current situation…………………….2
2. The causes of European Crisis……………………………………………………4 1. The external causes……………………………………………………………...4 2.1.1Government added leverage in the financial crisis made debt burden……….4 2.1.2 Rating agencies to fan the flames boost contagion………………………….5 2.2 The internal causes………………………………………………………………5
3.The impacts on China’s trade policy…………………………………..6 3.1 European sovereign debt crisis led to the RMB was appreciated……………….6 3.2 Affect China's exports to European countries……………………………………7 3.3 With the RMB appreciation of non-US currencies, speculative capital inflows may increase…………………………………………………………………………..7 3.4 The shrink issue of foreign exchange reserves…………………………………..8 3.5 European debt crisis affect the process of global economic recovery…………...8
Conclusion……………………………………………………………….9
Reference……………………………………………………………….11
Introduction Sovereign debt, it is point that sovereign state use the national reputation as a guarantee and through the issuance of bonds, and other methods to the international community have borrowed money. Because most sovereign debt in foreign currencies to international organizations, foreign government or international loans from financial institutions. Therefore, once the debt national credit rate was turn down, a sovereign debt crisis will be product. On December 11, 2009, the Greek government disclosed its public debt was as high as 300 billion euros. It was more serious than previously published. Affected by this, the three global credit rating agencies collectively cut Greece's sovereign credit rating. Thus light the fuse Europe sovereign debt crisis. With the eurozone sovereign debt crisis spreads, the eurozone country sovereign debt problem has already become the current global hot topic. The Greek as the leader of the "European countries" (PIIGS) sovereign debt crisis