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IMF and EU's Role in Resolving Greece's Economic Crisis

   

Added on  2019-09-23

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[TYPE THE COMPANY NAME]Roles performed by theInternational MonetaryFund (IMF) and theEuropean Central Bank(ECB) in resolving thefinancial crisisexperienced by Greece inrecent years[Type the document subtitle]RAGHAV[Pick the date][Type the abstract of the document here. The abstract is typically a short summary of the contentsof the document. Type the abstract of the document here. The abstract is typically a short
IMF and EU's Role in Resolving Greece's Economic Crisis_1

summary of the contents of the document.]1
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ContentsIntroduction...........................................................................................................................................2Roles performed by the European Central Bank (ECB) in resolving the financial crisis experienced by Greece in recent years...........................................................................................................................3Roles performed by the IMF in resolving the financial crisis experienced by Greece in recent years...7Conclusion.............................................................................................................................................9References:..........................................................................................................................................112
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IntroductionThe European Central Bank is the central bank for the Eurozone that comprises of nineteennations. The mandate of the bank is to maintain the stability of prices by setting up the keyrate of interests and by controlling the money supply of the union. The Eurozone facedsovereign debt crisis between 2009 and 2011 and at that time the bank undertook manyorthodox monetary policies like it introduced a program for buying the unlimited bonds, italso used negative rate of interests and introduced a $1.2 trillion quantitative easing plan(Baum, 2013). These steps divided the economists and the policymakers between the fact thatthe bank overstepped it authority in taking this decision and some argued that it should havetaken more aggressive action. But with continuous efforts, the immediate Eurozone debtcrisis had calmed down by 2015 major economic headwinds were facing Europe. IMF or the International Monetary Fund provides the economic analysis and advice onthe policy as part of its process of surveillance for the European economies that are advancedand emerging. These economies culminate in the annual consultations with the separate andindividual member countries. These consultations assess the economic outlook of thecountries and their economic and financial stability. Not only these policy discussions, butIMF is also responsible for holding the consultations with the euro area as a whole annually.This is similar to those that are held for the currency unions of other nations. The views ofthe IMF are then presented to the Euro group of the euro area (Baum, 2013). 3
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