G-8 Says World Economic Prospects Still Weak Essay

G-8 Says World Economic Prospects Still Weak - Essay Example ng to the improper banking regulations that existed in European countries along with the United States and Japan. As per the article, measures have been formulated in order to curb issues in relation to budget deficits and develop strong banking union through the implementation of efficient fiscal policy amid G8 nations for effective growth of world economy. These nations have worked collectively in order to strengthen the banking rules which would underpin the whole of the Euro zone. Additionally, the implementation of these changes in structure along with principles in relation to banking policies is perceived to enhance the economic conditions on a global context. The banking sector of European nations, the US and Japan are required to modify or reform their banking practices and systems with the objective of developing world economy and banking union (CNBC LLC, 2013). Factors to be Discussed The discussion will emphasize relevant studies that are parallel to the common economic e vents which include recession and inflation. One of the primary objectives of this research would be to analyze the moves that will be made for building a proper banking practice towards a strong banking union. The highlighting factors would be to analyze the underpinning issues that are seemed to trouble the overall banking system. Moreover, the various reforms and modifications in the banking principles and systems will be studied which are to be implemented by Japan and European nations. Along with all the other nations, the economic condition of the United States will be analyzed as well. 2.0 Discussion on the Economic Problem Issue The financial crisis situations had adversely impacted the banking operations and principles in an immense manner on global perspectives. Various reforms and policies have been implemented within banking sector with the aim of enhancing its operations and reviving the economic conditions. Cause of Problem The main factors related to the discussed iss ue in the article include the extensive economic growth of other countries and structural reforms that seemed to put the European countries under extreme pressure. The main areas of concern were identified to be the reformation of banks and its various policies in order to improve the financial policies of the European countries and G8 nations. The major cause of the problem was that the output was not delivered according to the requirements of the banking customers. Funds collected through banks were not allocated in an orderly manner which resulted in improper regulations of the banking functions or operations (International Monetary Fund. European Dept., 2013). Impact on Economy, Society or Even Political Stability The problems related to financial policies and reformation in banking sector seemed to have drastic effects on the economical, societal and political fronts which were a crucial problem for the Euro zone countries. The situations relating to the above factors were very drastic. The nations on the economic front got adversely affected because of the inappropriate banking regulations and various fiscal policies that were unable to ascertain the monetary standards of the nations. The main point of concern was the ineffective performance of the banking sector. The countries were planning to design various policies and regulations in relation to the