Originally when the first signs of the credit crisis in the United States began to emerge, many analysts around the world predicted the European economy was sound enough to weather the storm. It wasn't until more information came to light about how heavily invested many of the European financial institutions were in US mortgages that the initial optimism turned south. As such, the European Central Bank has done an about-face, wherein during the summer the ECB raised interest rates a quarter point to where most recently it cut its rate by three quarters of a percentage point, all in an effort to stimulate spending. So are the right moves being undertaken in Europe to help bolster one of China's major trading partners? And what does the future outlook for the European economy look like?

Ni hao, you're listening to  People In the Know, your window into the world around you, online at crienglish.com here on China Radio International. In this edition of the show we're talking about the European economy. So let's get started.

(Music)

First we'll hear from the London School of Economics and Political Science. Ian Begg is with the European Institute at the LSE.

(Dialogue with Begg)

And after a short break, we'll hear from another European economics expert.

(Promo)

Ni hao, you're listening to  People In the Know, your window into the world around you, online at crienglish.com here on China Radio International. I'm Paul James in Beijing. In this edition of the program we're talking about the recent moves by the European Central Bank to try to shore up the European economy. For more on this we're joined on the line now by Adam Slater, Senior Economist with Oxford Economics.

(Dialogue with Slater)

And with that we close out this edition of  People In the Know, online at crienglish.com here on China Radio International. When initially formed, some in the academic world predicted a quick end to the idea of a centralized European economy. Almost 10 years later, the strength of trade and overall economic prosperity of the EU, despite the current downturn, seems to show that integration was the right move after all. Questions or comments for us can be sent to people@cri.com.cn. For Executive Director Zhao Yang and Producers Xu Yang and Chen Mo, I'm Paul James in Beijing. We'll talk to you tomorrow.