Friday, January 27, 2012

Three World Financial Crises: A Full Account

To understand the financial crises that the world has been going through one needs to understand what money is, so I start there. I go on to examine how banks lend and borrow money. Then I look at the crucial part played by the 'bond market' which is used by governments and companies to raise the money to cover their expenditure. After that, I explain the financial relationship between a Government which has to spend and raise money and their Central Bank which helps it to do it. Finally I look at how the economic climate changes and why the world has been experiencing a series of financial crises.

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