Midterm Paper - Kyle Schuppan Global Exhange Rate Professor...

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Kyle Schuppan Global Exhange Rate Professor Strauss 3/11/11 Poland and the Financial Crisis The financial crisis we are facing in the United States is felt much more than that. The crisis has stretched across the world and is felt by almost every country. The crisis however was not a surprise, or is something the world has not seen before. This crisis was caused by a series of events that are very similar to events that have caused financial crisis in the past in other countries. The crisis was caused by five main mistakes made by the United States. The first was fiscal policy brought on by the United States. Bad fiscal policy by the United Sates led to the shadow banking collapse and the de-regulation of the stock market. The second cause to the crisis was excess borrowing by bad credit consumers because of low interest rates and too much asset appreciation which led to the housing bubble pop. The third cause was global imbalances, this happened due to the United States spending too much, while China saved money. The fourth cause to the crisis was macroeconomic policy, which was because the Federal Reserve left the interest rate too low for too long. The fifth and final cause to the crisis was contagion, the world, especially the United States, are interconnected economies, so when one falls then they all fall like dominos.
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While seeing the causes of the crisis, it’s easy to see how it is a huge, global problem in today’s economy. One country that was affected very little was Poland. Poland is a strong, thriving, European country. A few factors led to Poland not being as
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This note was uploaded on 04/25/2011 for the course MARKETING 300 taught by Professor Romyerong during the Spring '11 term at Saint Louis.

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Midterm Paper - Kyle Schuppan Global Exhange Rate Professor...

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