Economic Security, Financial Crisis, Trade, Biotechnology, Development

Deutsche Version

Economics & Finance

The international community faces a global financial and economic crisis which requires a coordinated global response. In early April, President Obama and world leaders representing more than 20 countries and more than 85 percent of the global economy met in London. The London summit was historic; at no time since World War II have world leaders come together in the same way to address economic challenges and the international financial system. With global income set to decline for the first time in 60 years and unemployment rising in nearly every country, this is a global crisis and it requires a coordinated global response.

The Obama Administration will act boldly to lift the American economy out of crisis and reform its regulatory structure. Through leading the example, the administration hopes to promote a global recovery and build confidence around the world. Combined efforts must begin with swift action to stimulate growth and the United States is ready to join a global effort on behalf of new jobs and sustainable growth.

Latest Developments

The Financial Stability Plan

June 17, 2009. President Obama laid out a comprehensive regulatory reform plan to modernize and protect the integrity of our financial system. The core principles include supervision and regulation of all financial firms; regulation of core markets and market infrastructure; consumer protection; tools to manage failing institutions; and improving international regulatory standards and cooperation. blog: video & transcript | background: fact sheets

The Financial Stability Plan is a full force, comprehensive approach that seeks to stabilize the financial system. At FinancialStability.gov, users will learn about the design of the Obama Administration’s Financial Stability Plan and its impact on opening up lending to consumers and businesses in the United States.

The American Recovery and Reinvestment Act

The purpose of the Recovery Act is to create and save jobs, jumpstart the U.S. economy, and build the foundation for long-term economic growth. The Act includes measures to modernize the nation's infrastructure, enhance America's energy independence, expand educational opportunities, increase access to health care, provide tax relief, and protect those in greatest need.

“We have put in place a series of financial initiatives, alongside the Recovery and Reinvestment Program, to help lay the financial foundation for economic recovery. We launched a broad program to stabilize the housing market by encouraging lower mortgage rates and making it easier for millions to refinance and avoid foreclosure. We established a new capital program to provide banks with a safeguard against a deeper recession. By providing confidence that banks will have a sufficient level of capital even if the outlook is worse than expected, more credit will be available to the economy at lower interest rates today -- making it less likely that the more negative economy they fear will take place.” – Secretary Geithner, Wall Street Journal Op-Ed, March 23, 2009

The Emergency Economic Stabilization Act of 2008

On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor. The legislation provides that the basic deposit insurance limit will return to $100,000 after December 31, 2009.

Information on the U.S. Economy

· Economic Report of the President
· Federal Reserve Board: About the Fed
· Bureau of Economic Analysis: U.S. Economic Accounts
· Bureau of Economic Analysis: Overview of the U.S. Economy
· Bureau of Economic Analysis: Gross Domestic Product
· Bureau of Labor Statistics: Economy at a Glance
· U.S. Census Bureau: Economic Indicators
· U.S. Census Bureau: Foreign Trade Statistics

The Global Financial System

eJournal USA: The Global Financial System - Six experts describe the mechanics of the global financial system presenting their views concerning the cyclical nature of markets, the interdependence of global trade relationships, and the role of regulation.

"There is no shortage in the world of experts with opinions about the causes of the current crisis and prescriptions for getting out of it, and it’s true that a different group of experts might well offer a different set of views from those presented here. What is surprising, perhaps, is how often certain common ideas emerge in the articles of this eJournal: that the nature of markets is cyclical, that global trade relationships are interdependent, and that a modicum of market regulation is a good thing."


Links

· International Monetary Fund: Financial Crisis
· World Bank: Financial Crisis
· Council on Foreign Relations: Global Economy in Crisis: Contains expert briefs; interviews; backgrounders; podcasts; Must Reads; and essential documents, graphs and charts.

· New York Times: Credit Crisis — The Essentials
· Financial Times: The Future of Capitalism
· The Wall Street Journal: Economy
· CNN: The Road to Rescue
· National Public Radio: Economy