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The Conflict Relation Between the Sovereign Debt of the Euro Area Countries and the Common Monetary Policy As a Potential Source For Geopolitical Changes

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  • CRISTE Adina

    (“Victor Slăvescu†Centre For Financial and Monetary Research, Romanian Academy, Bucharest)

  • LUPU Iulia

    (“Victor Slăvescu†Centre For Financial and Monetary Research, Romanian Academy, Bucharest)

Abstract

The spreading of the uncertainty shock in the euro area caused changes in both domestic and external macroeconomic conditions, generating a set of constraints on macroeconomic policies. The purpose of this paper is to identify some constraints of relation between the common monetary policy and the sovereign debts crisis of the euro area countries. The identification of such constraints is helpful to the extent that it would signal potential conflicts between countries, assuming that the political dissensions are factors which could enhance the monetary disintegration and the geopolitical structure change. The euro area crisis impairs the geopolitical power of influence of Europe and compromises the negotiating position of the European Union on the world stage.

Suggested Citation

  • CRISTE Adina & LUPU Iulia, 2013. "The Conflict Relation Between the Sovereign Debt of the Euro Area Countries and the Common Monetary Policy As a Potential Source For Geopolitical Changes," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 167-173, May.
    • Handle: RePEc:tdt:annals:v:xix:y:2013:p:167-173
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    File URL: http://fse.tibiscus.ro/anale/Lucrari2013/Lucrari_vol_XIX_2013_027.pdf
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    References listed on IDEAS

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    1. Bank for International Settlements, 2011. "The impact of sovereign credit risk on bank funding conditions," CGFS Papers, Bank for International Settlements, number 43, december.
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    3. Dabrowski, Marek, 2010. "The global financial crisis: Lessons for European integration," Economic Systems, Elsevier, vol. 34(1), pages 38-54, March.
    4. Ejsing, Jacob & Lemke, Wolfgang, 2009. "The Janus-headed salvation: sovereign and bank credit risk premia during 2008-09," Working Paper Series 1127, European Central Bank.
    5. Gerlach, Stefan & Schulz, Alexander & Wolff, Guntram B., 2010. "Banking and sovereign risk in the euro area," Discussion Paper Series 1: Economic Studies 2010,09, Deutsche Bundesbank.
    6. Matheron, J. & Mojon, B. & Sahuc, J.G., 2012. "The sovereign debt crisis and monetary policy," Financial Stability Review, Banque de France, issue 16, pages 155-167, April.
    7. Borgy, V. & Laubach, T. & Mésonnier, J-S. & Renne, J-P., 2011. "Fiscal Sustainability, Default Risk and Euro Area Sovereign Bond Spreads Markets," Working papers 350, Banque de France.
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    Cited by:

    1. CRISTE, Adina, 2013. "A General Assessment Of The Monetary Integration Process In Europe After Euro Adoption," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 17(4), pages 35-47.

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    More about this item

    Keywords

    sovereign debt; common monetary policy; geopolitical changes;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • G01 - Financial Economics - - General - - - Financial Crises

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