The Effects of the Eurozone Sovereign Debt Crisis

The Effects of the Eurozone Sovereign Debt Crisis

Author: Christian Schweiger

Publisher: Routledge

ISBN: 1138057495

Category: Debts, Public

Page: 158

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The book analyses the emerging centre-periphery divisions within the European Union which result from the unprecedented conditions created by the 2008-09 global financial crisis and the subsequent Eurozone sovereign debt crisis. The multiple layers of policy coordination which emerged in response to the crisis have initiated a process by which the EU is increasingly divided in terms of the level of vertical integration between the Eurozone core group and differentiated peripheries amongst the outsiders. At the same time the sovereign debt crisis has created a periphery of predominantly Southern European countries within the Eurozone that became dependent on external financial support from the other member states. The contributions in this book critically examine various aspects of the emerging internal post-crisis constellation of the EU. The main focus lies on national and supranational governance issues, national dynamics and dynamics in the Eurozone core as well as in the periphery. This book was originally published as a special issue of Perspectives on European Politics and Society.

The European Sovereign Debt Crisis and Its Impacts on Financial Markets

The European Sovereign Debt Crisis and Its Impacts on Financial Markets

Author: Go Tamakoshi

Publisher: Routledge

ISBN: 9781317629689

Category: Business & Economics

Page: 134

View: 691

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The global financial crisis saw many Eurozone countries bearing excessive public debt. This led the government bond yields of some peripheral countries to rise sharply, resulting in the outbreak of the European sovereign debt crisis. The debt crisis is characterized by its immediate spread from Greece, the country of origin, to its neighbouring countries and the connection between the Eurozone banking sector and the public sector debt. Addressing these interesting features, this book sheds light on the impacts of the crisis on various financial markets in Europe. This book is among the first to conduct a thorough empirical analysis of the European sovereign debt crisis. It analyses, using advanced econometric methodologies, why the crisis escalated so prominently, having significant impacts on a wide range of financial markets, and was not just limited to government bond markets. The book also allows one to understand the consequences and the overall impact of such a debt crisis, enabling investors and policymakers to formulate diversification strategies, and create suitable regulatory frameworks.

Prevention and Resolution of Sovereign Debt Crises

Prevention and Resolution of Sovereign Debt Crises

Author: Ms.Julianne Ams

Publisher: INTERNATIONAL MONETARY FUND

ISBN: 1484371321

Category: Business & Economics

Page: 22

View: 566

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“The IMF’s Role in the Prevention and Resolution of Sovereign Debt Crises” provides a guided narrative to the IMF’s policy papers on sovereign debt produced over the last 40 years. The papers are divided into chapters, tracking four historical phases: the 1980s debt crisis; the Mexican crisis and the design of policies to ensure adequate private sector involvement (“creditor bail-in”); the Argentine crisis and the search for a durable crisis resolution framework; and finally, the global financial crisis, the Eurozone crisis, and their aftermaths.

From the Financial Crisis to the European Debt Crisis

From the Financial Crisis to the European Debt Crisis

Author: Stefan Redlich

Publisher: Akademische Verlagsgemeinschaft München

ISBN: 9783960913795

Category: Business & Economics

Page: 128

View: 725

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The objective of this paper is to review and critically analyze the situation of different euro area member states (Portugal, Ireland, Greece and Spain), commonly referred to as PIGS, the different proposals put forward and ultimately develop and structure a tailored proposal as how to cope with the crisis. Additional analysis will concentrate on the way and the timing the German government reacted to the crisis. A concise conclusion sums up the crucial points of this paper and also gives an outlook, respectively a prognosis, of the future based on decisions taken or agreed to be taken.

European Central Bank Monetary Policy. The View of the Sovereign Debt Crisis

European Central Bank Monetary Policy. The View of the Sovereign Debt Crisis

Author: Felix Lesch

Publisher: GRIN Verlag

ISBN: 9783346410405

Category: Business & Economics

Page: 27

View: 722

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Studienarbeit aus dem Jahr 2020 im Fachbereich BWL - Bank, Börse, Versicherung, Note: 1,0, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule, Sprache: Deutsch, Abstract: This paper is about the European Central Bank Monetary Policy and the View of the Sovereign Debt Crisis. „Whatever it takes“– three simple but effective words had the desired effect and calmed the government bond markets in the summer of 2012, whose developments in the wake of the European sovereign debt crisis had led to immense financing difficulties for some member states of the euro area. Even more, the statement by Mario Draghi, then president of the European Central Bank (ECB), underlined the determination with which the ECB is willing to prevent a possible break up of the euro area. The measures taken by the ECB have included interest rate cuts, negative interest rates and purchase programmes of various assets. However, the ECB's measures did not meet with the exclusive approval of experts, they sometimes caused harsh public criticism and even the judiciary, in form of the Bundesverfassungsgericht (German Federal Constitutional Court) and the European Court of Justice (ECJ), had to address the issue. Against this background, this assignment aims to examine whether the monetary policy of the ECB infringes Article 123 (1) Treaty on the Functioning of the European Union (TFEU) which states the prohibition on monetary financing of member state budgets. To begin with, the origins of the European sovereign debt crisis are explained. The paper then outlines selected non-standard monetary policy measures taken by the ECB to mitigate the effects of the crisis, in form of Outright Money Transactions (OMTs) and the Public Sector Purchase Programme (PSPP). The fourth chapter focuses on the PSPP and analyses the programme against the background of Article 123(1) TFEU.

Europe on the Brink

Europe on the Brink

Author: Tony Phillips

Publisher: Bloomsbury Publishing

ISBN: 9781783602155

Category: Business & Economics

Page: 274

View: 136

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Europe is suffering from a bipolar economic disorder. Financial journalists divide the continent into two groups of nations - centre and periphery - not by geography but by credit rating. Europe on the Brink is a critical investigation of the root causes of this sovereign debt crisis, and the often misguided policy choices made to resolve it. Nobel Laureate Joseph Stiglitz, together with two other finance experts, compares debt contagion in Europe with regional financial crises elsewhere, while Roberto Lavagna, former economics minister in Argentina, provides a poignant comparative analysis with his own country's experience. Crucially and uniquely, Portuguese, Greek and Irish economists provide hard-hitting case studies from the perspective of the periphery. This much-needed book offers a heterodox economic perspective on the causes, symptoms and solutions of the biggest economic issue currently facing Europe.

The European Dept Crisis. Why it occured and what we can learn of it

The European Dept Crisis. Why it occured and what we can learn of it

Author: Christian Block

Publisher: GRIN Verlag

ISBN: 9783346264275

Category: Business & Economics

Page: 23

View: 363

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Bachelor Thesis from the year 2019 in the subject Business economics - Investment and Finance, grade: 7.5, Maastricht University, course: Finance, language: English, abstract: This thesis can be divided thematically into three major areas, to ultimately answer the questions of how the European debt crisis came to be, what weaknesses within the EMU led to this, and what lessons can be drawn from it all. First, the developments of the EMU from its inception up to the financial crisis in 2007. Second, the financial crisis and its direct impact on the European sovereign debt crisis. Third, the thesis gives an outlook on the current situation eight years after the outbreak of the crisis and provides suggestions for future research. The Euro celebrated its 20th anniversary last year (2019) and is known worldwide as a symbol of the unity and sovereignty of the European Union. Introduced at a time by people and states who had fought a relentless war against each other in the same century, the Euro is one of the greatest achievements of modern times. Today, a European generation is growing up that no longer knows any national currency and does not understand why it is so important to protect the Euro as a common currency. However, it is precisely this generation that has to deal with the national debt crisis, which has become one of the greatest economic policy challenges that the united Europe has faced since the existence of the monetary union. The purpose of this thesis is to help understand the development of the European sovereign debt crisis from the introduction of the Euro to the present day. In this context, special attention is paid to the analysis of the causes, since these must be understood fundamentally in order to avoid the repetition of the same process in the future. The key motivation behind this paper is that with current declines in economic growth and inverse yield curves pointing towards a recession, it is more important than ever to understand past developments to avoid such collapses in the future. Past empirical research often overlooks this important forward-looking function; further, most works were published immediately after the financial crisis, with relatively few recent contributions. Clearly, the relevance for society as a whole is given, as implications of economic crises as extremely widespread and caused devastation for many. As globalization has only increased in the decade thereafter, any coming recession would be worse than those experienced before.

The European Sovereign Debt Crisis

The European Sovereign Debt Crisis

Author: Phoebus L. Athanassiou

Publisher: Routledge

ISBN: 9781000423099

Category: Law

Page: 260

View: 604

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The European Sovereign Debt Crisis: Breaking the Vicious Circle between Sovereigns and Banks explains why the euro area’s progress towards reining in the risks arising from the well-documented bi-directional financial contagion transmission mechanism that links sovereigns to commercial banks has been more prominent compared to the channel of contagion moving from banks to sovereigns. Providing an analysis of the legal and regulatory measures that Europe and the euro area have taken to mitigate the exposure of sovereigns to financial crises generated by commercial banks, this book draws attention to areas where improvements to the arsenal of tools hitherto introduced are either desirable or necessary. Chapters further explain – with recourse to economic and legal arguments – why the channel of contagion moving from sovereigns to commercial banks has proven harder to close, and explores ways in which progress could be made in the direction of closing it so as to avert the risk of future banking sector crises. This work provides essential reading for students, researchers and practitioners with an interest in sovereign debt crises and the euro-area banking system.

The European debt crisis

The European debt crisis

Author: Costas Simitis

Publisher: Manchester University Press

ISBN: 9781526112002

Category: Political Science

Page: 366

View: 421

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In this book, former Greek Prime Minister Costas Simitis examines the European debt crisis with particular reference to the case of Greece. Greece was the first Eurozone country to face an enormous deficit, which reached 15% of GDP in 2009. As the Greek crisis unfolded, other Eurozone countries displayed identical symptoms, albeit in varying degrees of severity. From a strictly Greek predicament the debt crisis quickly turned into a problem for the European Union as a whole. This first English language translation investigates the causes of this spillover and chronicles the policy responses to combat it. It also discusses Greece’s troubled political economy, the country’s difficulties in adjusting to the demands of its creditors and the vehement social and political reactions to the policy of austerity. Through his comprehensive and authoritative analysis, Simitis provides valuable insights into the crucial interconnection between Greece’s own economic troubles and the wider European search for macroeconomic stability and sustainable economic growth. As such, the book appeals well beyond those with a narrow academic interest in Greece. This is very much a discussion about the future of the Eurozone and the European Union as a whole.

European Identity in Times of the European Sovereign Debt Crisis

European Identity in Times of the European Sovereign Debt Crisis

Author: Alexander Meyer-Thoene

Publisher:

ISBN: 3656930538

Category:

Page: 108

View: 347

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Master's Thesis from the year 2012 in the subject Politics - International Politics - Topic: European Union, grade: 2,0, University of Hamburg (Institut fur Journalistik und Kommunikationswissenschaft), language: English, abstract: In these difficult times of the European sovereign debt crisis, this project aims at exploring the effect of this unprecedented crisis situation onto the sense of a European identity. For this purpose, the research Question has been formulated as follows: How has a sense of European identity been affected by the European sovereign debt crisis? The notion of a European identity which lies at the heart of this study is everything but new to the policy makers in Brussels, to social theorists and to political scientists from around the globe. As elusive as the concept of a European identity might first appear, the sheer amount of academic publications, research projects, think tanks and media coverage that have contemplated the notion of European identity, indicate its fundamental importance to the future of the European project and its institutions. Given the fundamentally altered circumstances, which Europe has been facing since the onset of the European debt crisis in late 2009, it becomes necessary to reassess the contemporary state of an evolving sense of European identity. As large parts of the Academic community and various EU lead polls have suggested, the interplay between national and supra-national "imagined communities" and the European institutions will ultimately determine the support for a European polity amongst its citizens which, as many scholars suggest, is vital for the continuation of the "unfinished adventure" that is the European Union. The present monetary crisis, which undoubtedly has affected some European states worse than others, has received a great deal of attention by politicians, international media outlets and economists. Aside all the measures of strategic and financial nature which have been undertaken to c"

Resolving the European Debt Crisis

Resolving the European Debt Crisis

Author: William R. Cline

Publisher: Peterson Institute

ISBN: 9780881326499

Category: Business & Economics

Page: 305

View: 131

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What began as a relatively localized crisis in Greece in early 2010 soon escalated to envelop Ireland and Portugal. By the second half of 2011, the contagion had spread to the far larger economies of Italy and Spain. In mid-September the Peterson Institute and Bruegel hosted a conference designed to contribute to the formulation of policies that could help resolve the euro area debt crisis. This volume presents the conference papers; several are updated through end-2011. European experts examine the political context in Greece (Loukas Tsoukalis), Ireland (Alan Ahearne), Portugal (Pedro Lourtie), Spain (Guillermo de la Dehesa), Italy (Riccardo Perissich), Germany (Daniela Schwarzer), and France (Zaki La�di). Lessons from past debt restructurings are then examined by Jeromin Zettelmeyer (economic) and Lee Buchheit (legal). The two editors separately consider the main current policy issues: debt sustainability by country, private sector involvement and contagion, alternative restructuring approaches, how to assemble a large emergency financing capacity, whether the European Central Bank (ECB) should be a lender of last resort, whether joint-liability "eurobonds" would be feasible and desirable, and the implications of a possible break-up of the euro area. The luncheon address by George Soros and a description (by Steven R. Weisman with Silvia B. Merler) of the policy simulation game played on the second day of the conference complete the volume. Involving market participants and experts representing the roles of euro area governments, the ECB, IMF, G-7, and credit rating agencies, the game led to a proposal for leveraging the capacity of the European Financial Stability Facility through arrangements with the ECB.

Sovereign Debt Crises

Sovereign Debt Crises

Author: Juan Pablo Bohoslavsky

Publisher: Cambridge University Press

ISBN: 9781316510445

Category: Business & Economics

Page: 309

View: 365

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Contributes to a better understanding of the policy, economic, and legal options of countries struggling with debt problems.