This article talks about the role that China is
playing in the stock markets across the globe in Europe and Asia. China is the
second leading economy in the world, according to this article. It talks about
the European Central Bank’s decision to withdraw support that is vital for
certain European countries, like Greece. Because China is involved in the same
stock markets in the region, it is inevitably affected by this particular
decision. The European Central Bank is
trying to avoid going into debt and so on, so that leaves countries in
wealthier statuses to be ready to fill in with money where it is needed. (That’s what I gathered from the article). In
order to be able to be of positive help, China “cut the minimum level of
reserves its banks are required to hold.’’ Why is this important? What does
this do? Analysts are sure that it will work to help prevent a ‘’global
economic shutdown’’ as well as ensure financial stability. I chose this article
because I thought it was interesting how the actions of one team player
affected so many countries, specifically Asia (since Europe was the one who
made a large change). It was more interesting to me that it is China with the
ability to bail out countries on separate continents. It became clearer to me
how vital certain Asian countries are to the global economy.
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