The financial developments around the world are very complex and intricately related to each other. As the Euro crisis has shown, companies and politicians in the USA and China have become alert the problems evolving abroad. The trading markets, stock exchanges and currency values of one place cannot be seen as separate mechanisms, but they go hand in hand and depend on each other.

One aspect which has recently become very important is the rating agencies’ evaluations of each country’s solvency. These ratings can affect the trading situation and political influence of the country on the international level.

As the devastating example of Greece is showing, a low financial standing can endanger political stability and also diminish the credibility of the national government. In this special case, a drastic cut of financial support as an austerity measure has lead to a rise of unemployment, and due to lacking insurances many people are forced to leave their homes and to become used to a lower living standard.

Keeping track of finance issue

Although the statistics on statista prove that the market changes according to financial ratings, the interconnections worldwide make it difficult to judge decisions and to gain an overview of financial developments. But one should know how they work in order to be able to judge their results.

Generally speaking, the rating agencies are most important for brokers, investors and the governments. For all these different groups, the rating has individual functions. For investors, for example, the rating can inform about a specific growing market and can influence the decision to invest money into certain projects and to reject others. In that way, the ratings can majorly influence decisions made on a very high level and can lead to the creation of jobs in certain fields while also hindering other businesses to flourish. Yet, it has to be mentioned that experts have emphasized the oligarchical position of certain rating agencies which may hinder a truly equal and unbiased economic development.