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The Sovereign Debt Crisis: Causes and Consequences

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  • Gunther Tichy

    (WIFO)

Abstract

The quasi-global sovereign debt crisis is currently the focus of the political debate and of media attention. The origins of the crisis have long been considered too narrowly, with often one-dimensional solutions being proposed. A somewhat more comprehensive approach was first adopted at the EU Council Meetings of October and December 2011, thereby providing a major step towards the resolution of the most pressing problems. Tighter fiscal policy and more ample resources for the stabilisation fund are important moves. Nevertheless, a lasting solution must take a broader perspective and address certain deficiencies in the setup of EMU that were brought to the fore by the uneven economic performance of its members.

Suggested Citation

  • Gunther Tichy, 2012. "The Sovereign Debt Crisis: Causes and Consequences," Austrian Economic Quarterly, WIFO, vol. 17(2), pages 95-107, May.
    • Handle: RePEc:wfo:wquart:y:2012:i:2:p:95-107
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    Euro Crisis Rating Agencies Ratings;

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