Question

In a 300 word essay, discuss and explain the reasons for the financial instability in Europe; and discuss and explain the differences in policy response between the U.S. and Europe.

Answer 1

The reaons for the financial instability in Europe is due to lower of inflation rate. There is a target of inflation rate is 2% but the Europe reach and accept only below 1% inflation rate by which financial instability comes out in Europe.

The Most serious mistake occurs by Europe government that the ECB buying more bonds and do the lower benchmark interest rate even into negative territory.

Lower Interest rate are demeed and supposed to Higher growth in investment and consumption demand. But in the significance of different countries like Germany, Neitherland and many other that their interest rate becomes to zero for some time and there is no any significant impact of bond purchase.

So, The above given reasons are the most important for bringing out the financial instability in Europe.

The Difference in policy response between U.S. and Europe are the problem arises in united states after the 2001 recession, the federal bank kept the interest rate lower the some period and the corporate sector of their does not increase its investment.

Most of the policy discussed by international community in europe and some of the policy are taking in action by united states for early arrival of children and families by central America. They are-

1. At the Borders

2. Interior Responses and returns

3. International Corporation

Conclusion-

The scope Migrant crises faced by Europe and central America which are faced by United states, there have been similar to response that efforts at the borderwhich are manage to arrival, efforts from those who have already arrived and international efforts to prevent of migrants.