Key Points Essay Example | Topics and Well Written Essays - 250 words - 2

Key Points - Essay ExampleFirstly, the article highlights that the financial distress impairs the ability of banks and former(a) financial institutions to generate liquidity and thus, make do a precautious approach to building risk profile of their loans. It becomes uncontrollable for small businesses to get access to credit from these institutions which bottomland be major contributors to the recovery of the US economy. Eichengreen (2011) is of the emplacement that recent financial crisis is much to a greater extent severe as compared to the Great low as it is plausibly to the growth pass judgment of advanced economies as these economies are highly credit driven.Secondly, the article highlights that there is a little evidence from the Great Depression suggesting that the increase in the public debt in the form of higher(prenominal) budget deficit and government borrowing actually contributes to the slowdown in the investment. Although, it is argued that over public debt leads to sort in tax policies, and higher interest rates making investments unattractive but the evidences from the Great Depression period suggest that after it the public debt increased by more than double however, the interest rates were not high.Thirdly, Eichengreen (2011) presented evidence from the Great Depression period that the slowdown in the economy actually created opportunities for businesses to take advantage from and reorganize themselves in a way that they are able to create more cherish in the period of recovery following the depressed conditions in the economy. However, one aspect of recovery that is more relevant to the recent crisis mentioned in the article is the slowdown in technology generation and implementation which can surely have greater implications for the current