Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Xiaogang Village
experienced a severe
draught in 1978 and
Agriculture Sector decided to experiment
Household
People’s Commune: Common wherein people were
Responsibility
production unit in the area free to plant and raise as
System is introduced
created by Mao but a failiure many animals they liked
across China and is a
to though land still
success
belonged to state
How Quantitative Easing works
Open Market Operations
Banks & Other Financial Institutions
Central Bank of a lend to both governments and
Economy
country controls the corporate borrowers
flow of money by
controlling interest Government Corporate
rates and also Bonds Bonds
financing
government bonds
Excess Reserves
Money is available in
the market for
financial purposes
Government can
crowd out corporate
Money availability borrowers by
stimulates consumption and borrowing most
investment available funds
How subprime crisis caused a recession in USA?
Housing Market in USA
Less money to
Easy availability of money as Fed lend causes lesser
held interest rates at near zero Economic activity investment and
levels decreases and consumer
unemployment spending also
rises causing decreases
further fall in
Banks lead aggressively to home prices and a
owners and construction recession starts
companies as housing prices soar