Question

In: Economics

Suppose that in the next five years CEECs will experience a rapid turnaround (increase and then...

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?

Solutions

Expert Solution

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.


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