Presented By: Shardul Churi Satish Chavan Namita Mahtre Jaydip Raval Asha Tilwani
Conclusions
Cautious Eurozone response to Financial Crisis
Interest rate policy reaction delayed: concentration on inflation target Fiscal policy reaction muted: Stability & Growth Pact
Common currency members avoided large devaluations and foreign currency debt. European governments have tried to act together, not always successfully. Limited impact of falling exports due to extensive internal trade relationships. Greece facing difficult adjustment problems, European banks avoiding losses on Greek bonds.