Related Papers
DETERMINANTS OF DEBT CRISIS IN EU AND THE RECOVERY EFFORTS
Osman Nuri ARAS
European Union has taken economic and financial measures to cope with the debt crises erupted in 2009. These measures can be summarized as putting in place a bail-out mechanism and austerity measures, strengthening economic policy coordination, setting up " Stability and Growth Pact III " and the establishment of a system of macroeconomic surveillance, introducing the " Euro Plus Pact " for closer economic coordination of euro-zone countries and the establishment of a permanent European Stability Mechanism (ESM). Will the European Union be able to master the debt crises? To answer this question, we will examine the economic and financial determinants of the crises. Moreover we will discuss how effective the economic and financial measures taken for the recovery of EU countries.
European debt crisis
2013 •
Jana Hvozdenska
International Journal of Business and Economics Research. Vol. 3, No. 2, 2014,
A Review of European Debt Crisis Causes and Consequences
2014 •
G. M. Wali Ullah
This paper researched on the causes, current consequences and potential implication of the European debt crisis. The crisis was found to be a result of factors including international trade imbalances, the effects from the global crisis 2007-2012 and the failure in bailout approaches to cure Europe from the global financial distress. This has caused panic across the world due to the fact that negative financial situations in peripheral countries in Europe might further demolish the global financial markets. Even though significant growth was presumed from the introduction of Euro, the financial crisis resulted in sharp rise in bond yields, CDS, cross-correlation and spillover effects across bond markets of the Eurozone. Yield curves of the GIIPS countries acted as a cluster; differentiating from stronger and more stable economic forces. In addition, crisis resulted in significant dip of market confidence on Euro and depreciation of Euro against major currencies. Commodity prices i.e. spot price of gold rose to almost 300% over the time crisis period, utilized by governments as a defense mechanism against the economic downturns. Potential problems that might arise from this severe crisis and financial prospects of European states as well as governments over the world are also assessed and discussed.
Economic Themes
EU Crises Multiplier - From One Crisis To Another
2014 •
Gajo Vanka
Key Factors Behind the European Debt Crisis
2012 •
Juraj Sipko
This paper analyzes the main macroeconomic indicators since 1995 in selected European Union countries as well as in the eurozone. Based on a comprehensive comparative analysis of net international investment position, current account and the debt level in some sectors of the economy, the paper found that there is a trend towards a divergence process instead of the intended real convergence process in the EU countries. In addition, in line with the present significant deterioration of public finance, the paper provides a comparative analysis across the individual countries in the eurozone. The study came to the conclusion that countries that lost their competitiveness had external deficits, which caused fiscal deficits, including public debt. Since the creation of the European Union these countries have ignored the rules set out in the Stability and Growth Pact, which has led to fiscal unsustainability. In order to put the economy on a balanced, sustainable and strong economic growth...
Munich Personal RePEc Archive
The Eurozone Debt Crisis: Causes and Policy Recommendations
2020 •
Olzhas Zhorayev
During the first decade of its existence, the Eurozone performed relatively better than other large OECD economies. However, the debt crisis challenged the currency union and tested its resilience. This paper analyses the European debt crisis from the comparative political economy perspective and suggests policy options to address the fundamental roots of the crisis.
THE EUROPEAN DEBT CRISIS: CAUSES AND CONSEQUENCES
Victor Beker
A common explanation for the European debt crisis has been that the introduction of the euro in 2001 caused interest rates to fall in those countries where expectations of high inflation previously kept interest rates high. Bond buyers assumed that a bond issued by any government in the European Monetary Union was equally safe. As a result, the interest rates on Greek, Italian, etc. government bonds were not significantly different from the interest rate on the German government bonds. Governments responded to the low interest rates by increasing their borrowing. However, data do not endorse this explanation, as is shown in the paper. An alternative explanation has been that the European debt crisis was just a consequence of the American subprime one. Again, data do not entirely support this hypothesis although the connection between both crises is explored in the paper. A third argument states that the introduction of the euro, and its effects on external competitiveness, triggered mounting disequilibria and debt accumulation in the noncore countries or periphery. This argument seems to be valid to a certain extent just in the cases of Greece and Portugal, but not for the rest of the countries involved in the crisis where other factors seem to have played a major role. A distinction is made between a first group of countries whose debt problems have roots before 2007 but did not worsen significantly after that year and a second one of ¨new¨ highly indebted countries. Finally, Spain appears as a special case. The development of the indebtedness process in these three different types of countries allows isolating the factors which were determinant in each case. The conclusion is that the European indebtedness process does not accept a unique explanation and its solution will necessarily require resource transfers from the rich to the indebted countries of the euro-zone.
Financial and Monetary Policy Studies
The European Debt Crisis
2016 •
Victor Beker
Oeconomia Copernicana
Sovereign Debt Crisis of the Eurozone Countries
2016 •
Sławomir Miklaszewicz
The aim of the publication is to examine the fiscal position of the euro area countries and fiscal policy architecture in Europe after the outbreak of the financial and economic crisis started in 2008. The first part of the publication consists of the analyses of the budgetary situation of euro area countries and complications with the increasing costs of servicing the public debt in the European market affected by the financial liquidity crisis. In the second section the most important changes in the framework of budgetary policies coordination process in the euro zone are presented. The final section describes the role and activities of the European Central Bank in minimising the negative consequences of the debt crisis in the euro zone.
EUROPEAN DEBT CRISIS – GENESIS AND IMPLICATIONS
Aleksandar Dejanovski
European debt crisis cause disruption of the Macedonian financial sector, which was manifested by a decline in real GDP, decline in exports, tightening of financing and increased debt. The problems are even greater if we know that the European crisis was followed by the global financial crisis of 2008, whereby may state that devastating effects are even greater and more destructive on euro scale but also in the Macedonian economy, too. Issues about the effects of the European debt crisis are very interesting and actual because, there are still not finished and may accumulate negative outcome for both, the European Union and the Republic of Macedonia. The main objective of this thesis is to investigate the problems and future challenges generated by the European debt crisis on the Macedonian financial and real sector, which can be ascertained by monitoring the following variables: movement of the real GDP, indebtedness, the trade deficit in the balance of payments. The results shows that regarding current circ*mstances, Republic of Macedonia should focus on stimulating private sector as the main generator of economic growth, debt reduction and rational spending as well as an increase in lending, i.e. expansionary monetary policy.
