Financial crisis in Ukraine 2008: cause and effect
The catalyst for the financial crisis in Ukraine 2008 was the uncontrolled growth of money supply. Issuing funds have led to increased demand for products, and as a consequence to higher prices. Thus, the causes of the financial crisis caused by itself economic model of Ukraine. Stimulating the economy through the credit through interest on loans. To repay the loan, the person or company should in the next year to work better than the previous one, to cover the loan costs.
Living in Ukraine has become worse
As of 1 November 2010. in Ukraine, according to Goskomstat, the population was 45 808 thousand. During January-October 2010. population has decreased by 154.1 thousand. This natural decrease of population of Ukraine is one of the most significant among European countries.
Macroeconomic policy of Ukraine
There is an raising popularity in the improvement literature that macroeconomic stabilization, which actually assumes low budget deficit, very low inflation and permanent exchange rate, is a essential, and not sufficient condition for monetary climate growth. If anything at all, the evidence suggests that it is only inflation higher than some tolerance point that harms increase.