The US economy has gone through a period of fluctuation in the lasttwenty years or so. The economy had a time of significant expansion that lasted for almost ten years. Stock markets made enormous gains,especially in areas of technology, media and communication. This led to the belief in the emergence of a 'new economy' with rules that were different from what had traditionally been known. However, beginning in March 2000, the stock market simply crashed. The US is now slowly recovering from the aftermath of the bursting of the 'new economy' bubble - which was one of the worst in monetary history. In this sophisticated yet assessable analysis of the US economy, the authors examine the causes and consequences of the bursting of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined.

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