example, the economic crisis of the U.S. affected the economy of the Arab country, and the global economic crisis in 2008/2009 led to a drop in oil prices and tourism. Consequently, a significant decline in oil prices had a direct impact on the economy of the exporting countries such as Libya and Algeria. There was also a decline of the capital flow in the petroleum producing countries. For example, there was a fall in export by 14% in Morocco and Egypt in 2009, 3% in Tunisia, and Algeria leading to a decline in the revenue of the affected countries. The highest decline was recorded in… Continue Reading...
the Global Economic Crisis of 2007-08), has changed the way the world operates and the way trade is not only conducted but, in essence, necessitated. In the past, trade was a natural outcome of what Adam Smith described as the economic extension of the “division of labor”—the concept that by focusing energy on maximizing production in an area that was a natural fit for a particular nation, that nation would be positioned to export its product to nations less fit to produce at the same level. Those other nations would… Continue Reading...
years because of loose monetary policy coming out of the Federal Reserve (Claeys & Darvas, 2015). This policy became so loose following the Global Economic Crisis of 2008 that the Fed kept interest rates low (which punishes savers), started buying Treasury bills hand over fist (like the rest of the world’s central banks—with the ECB even dipping into corporate bonds) in order to keep the market propped up and rates low, and all that new money worked to dilute the value of the Notes already in circulation so that the purchasing power of dollar was essentially cut in half thanks to the federal government’s and the Federal Reserve’s belief that… Continue Reading...
to “quantitatively ease” the market shock that emanated from the Global Economic Crisis of 2008 by way of printing trillions of new dollars and propping up the bond market with them. The spillover effect of bond purchases into the stock market has been well documented (Zhang, Zhang, Wang & Zhang, 2013; Yavas & Rezayat, 2016), but the real story is the rising inflation in various asset classes as a result of QE (Heller, 2017): stocks, bonds, housing, food, precious metals—the price of nearly everything has gone up since the central bank began heavily diluting the dollar (which is currently… Continue Reading...
the causality relationship between "corporate governance and corporate diversification strategies in the context of the global economic crisis" (Florentina, 2012). Corporate governance is based on the theory of the "organization and the expenses it implies," and the organization's efforts to clarify relationships "between the several actors to the determination of management" (Florentina, 621). Good governance " . . . reduces risks, increases performance . . . improves managerial style," and offers transparency vis-a-vis "social responsibility" (Florentina, 624). But when there are… Continue Reading...
