The exchange rate is simply how much one currency is worth of another. Two main systems determine an exchange rate—a floating (fluctuating or flexible) and a fixed (pegged) currency. A floating currency is one that depends on how much buyers are willing to pay for it or what the supply and demand is. If a [...]
The European Union is trying to cope with its debt crisis by creating more debt. On May 10, the EU released $1 trillion in an attempt to save the euro, especially since there were fears that the debt depression in Greece would start spreading to other indebted countries. This step gave immediate results in the [...]
Spain is also experiencing an economic downturn, but according to financial experts, the situation is not as bad as it is in Greece. Although Spain was once one of the biggest sources for jobs in Europe, its unemployment rate of 20.05% in 2010 is now the highest in the euro zone, and is a major [...]
