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gb4 - fact that these meetings were opened up to the G-20...

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The 2008 Global Financial Crisis The U.S. housing bust triggered a global financial crisis that reached its worst point in 2008. Originally, many countries felt that the crisis was purely American. They soon discovered that the interconnectedness of the world financial markets made them susceptible to the crisis, even if they had nothing to do with its causes. The global financial crisis hit the developed countries the hardest, though it also showed growth in the developing countries. It also caused many countries— including the United States—to nationalize major financial institutions and other businesses to prevent a deeper recession. One positive outcome from the global financial crisis was the first ever meeting of the G-20 leaders—the leaders of the 19 largest economies in the world, plus the European Union— which occurred in November 2008. Previously, international meetings such as this were restricted to the G-7 countries. The
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Unformatted text preview: fact that these meetings were opened up to the G-20 countries is a testament to the importance of the emerging economies in the global financial system. Iceland’s Financial Crisis Iceland was especially hard hit by a financial crisis in 2008. The country had to nationalize three major banks, and it eventually had to get an emergency loan from the International Monetary Fund. Its currency—the Icelandic Krona— depreciated severely in 2008 as a result of the crisis. Iceland’s major problem was that is was overleveraged—its external private debts were more than five times its gross domestic product, and Iceland’s Central Bank did not have enough cash to back its failed banks. Some argue that Iceland became too involved in globalization too quickly. Easy access to loans and a strong currency allowed Iceland’s firms to expand aggressively. They became overleveraged, and a financial crisis ensued....
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gb4 - fact that these meetings were opened up to the G-20...

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