In: Economics
Suppose that in the next five years CEECs will experience a rapid turnaround (increase and then decrease) in capital inflows and output decline. Based on what you know about economic performance and the impact of the 2008 financial crisis on these countries, how would you explain why output might fall further in some countries than in others and why growth might resume relatively quickly in some countries relative to others?
Based on the economic performance and impact of the 2008
financial crisis very serious issues faced in each and every
countries affect this impact.The globaly manner the economies gdp
fall in over some years continuosly and also each type of economy
like developed,or developingdeveloping or underdeveloped all
countries faces this impact in various different ways. So based on
this reality already happen.
From this point of view we can assure that the next five years will
experience a rapid turnaround in capital major decline in inflows
and output levels. The output in manufacturing and service
industrial sectors very low compare with their standard.and the
money supply as well as banking and insurance service sector all
are facing these issues. The export and imports become negative
figures.This is also a reason for the fall in output.The new
investment is very rarely successful in these periods.
But some countries might resume relatively quickly in some
countries relative to others because of the efficient and better
measures and policies of government. And control of inflation and
the proper supply and inflow outflow of factors of production
mainly money supply these are the main reason for the early resume
from these crisis of several countries.