IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/106331.html
   My bibliography  Save this paper

The Eurozone Debt Crisis: Causes and Policy Recommendations

Author

Listed:
  • Zhorayev, Olzhas

Abstract

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.

Suggested Citation

  • Zhorayev, Olzhas, 2020. "The Eurozone Debt Crisis: Causes and Policy Recommendations," MPRA Paper 106331, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106331
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/106331/1/MPRA_paper_106331.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hope, David, 2016. "Estimating the effect of the EMU on current account balances: A synthetic control approach," European Journal of Political Economy, Elsevier, vol. 44(C), pages 20-40.
    2. Schelkle, Waltraud, 2017. "The Political Economy of Monetary Solidarity: Understanding the Euro Experiment," OUP Catalogue, Oxford University Press, number 9780198717935.
    3. Paul Krugman, 2013. "Revenge of the Optimum Currency Area," NBER Macroeconomics Annual, University of Chicago Press, vol. 27(1), pages 439-448.
    4. Adrian Blundell-Wignall, 2012. "Solving the Financial and Sovereign Debt Crisis in Europe," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2011(2), pages 201-224.
    5. Paul De Grauwe, 2013. "The European Central Bank as Lender of Last Resort in the Government Bond Markets," CESifo Economic Studies, CESifo Group, vol. 59(3), pages 520-535, September.
    6. John Muellbauer, 2013. "Conditional eurobonds and the eurozone sovereign debt crisis," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 29(3), pages 610-645, AUTUMN.
    7. Charles Wyplosz, 2016. "The six flaws of the Eurozone," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(87), pages 559-606.
    8. Manuela Moschella, 2014. "Monitoring Macroeconomic Imbalances: Is EU Surveillance More Effective than IMF Surveillance?," Journal of Common Market Studies, Wiley Blackwell, vol. 52(6), pages 1273-1289, November.
    9. Hope, David, 2016. "Estimating the effect of the EMU on current account balances: a synthetic control approach," LSE Research Online Documents on Economics 67137, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samer Matta & Michael Bleaney & Simon Appleton, 2022. "The economic impact of political instability and mass civil protest," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 253-270, March.
    2. Monastiriotis, Vassilis & Zilic, Ivan, 2020. "The economic effects of political disintegration: Lessons from Serbia and Montenegro," European Journal of Political Economy, Elsevier, vol. 65(C).
    3. Gabriel, Ricardo Duque & Pessoa, Ana Sofia, 2024. "Adopting the euro: A synthetic control approach," European Journal of Political Economy, Elsevier, vol. 83(C).
    4. Campos, Nauro F. & Jarko, Fidrmuc & Iikka, Korhonen, 2017. "Business cycle synchronisation in a currency union: Taking stock of the evidence," Bank of Finland Research Discussion Papers 28/2017, Bank of Finland.
    5. Vratislav Izák, 2013. "Dluh nefinančních korporací a ekonomický růst [Debt of Nonfinancial Corporations and Economic Growth]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(2), pages 171-187.
    6. Barlow, Pepita, 2018. "Does trade liberalization reduce child mortality in low- and middle-income countries? A synthetic control analysis of 36 policy experiments, 1963-2005," Social Science & Medicine, Elsevier, vol. 205(C), pages 107-115.
    7. Juneja, Januj, 2017. "How Germany benefits the most from its Eurozone membership," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1074-1088.
    8. Omid M. Ardakani & N. Kundan Kishor & Suyong Song, 2024. "Does membership of the EMU matter for economic and financial outcomes?," Contemporary Economic Policy, Western Economic Association International, vol. 42(3), pages 416-447, July.
    9. Scharpf, Fritz W., 2018. "There is an alternative: A two-tier European currency community," MPIfG Discussion Paper 18/7, Max Planck Institute for the Study of Societies.
    10. Ioannis Litsios & Keith Pilbeam, 2024. "Explaining and correcting trade imbalances between the Northern and Southern Eurozone: An empirical investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 1079-1096, January.
    11. Helena Glebocki Keefe & Ralf Hepp, 2024. "The effects of European fiscal discipline measures on current account balances," International Economics and Economic Policy, Springer, vol. 21(1), pages 251-283, February.
    12. Francesco Spadafora, 2020. "Completing the Economic and Monetary Union: Wisdom Come Late?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 379-409, November.
    13. Baccaro, Lucio & D'Antoni, Massimo, 2020. "Has the "external constraint" contributed to Italy's stagnation? A critical event analysis," MPIfG Discussion Paper 20/9, Max Planck Institute for the Study of Societies.
    14. Waltraud Schelkle, 2018. "The political economy of monetary solidarity: revisiting the euro experiment," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 44(3), pages 371-403.
    15. Benedicta Marzinotto, 2017. "Euro area macroeconomic imbalances and their asymmetric reversal: the link between financial integration and income inequality," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(1), pages 83-104, April.
    16. Barlow, Pepita, 2018. "Does trade liberalization reduce child mortality in low- and middle-income countries? A synthetic control analysis of 36 policy experiments, 1963-2005," LSE Research Online Documents on Economics 102664, London School of Economics and Political Science, LSE Library.
    17. Duarte, Rosa & García-Riazuelo, Álvaro & Sáez, Luis Antonio & Sarasa, Cristina, 2022. "Economic and territorial integration of renewables in rural areas: Lessons from a long-term perspective," Energy Economics, Elsevier, vol. 110(C).
    18. Schelkle, Waltraud, 2017. "Hamilton’s Paradox Revisited: Alternative lessons from US history," CEPS Papers 12963, Centre for European Policy Studies.
    19. Florentin Kerschbaumer & Andreas Maschke, 2021. "The Implications of Monetary Union for Income Inequality: An Empirical Assessment," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 47(4), pages 537-574.
    20. Florence Bouvet & Roy Bower & Jason C. Jones, 2022. "Currency Devaluation as a Source of Growth in Africa: A Synthetic Control Approach," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(3), pages 367-389, June.

    More about this item

    Keywords

    Debt crisis; macroeconomic imbalances; currency union; optimal currency area; varieties of capitalism; fiscal consolidation; structural reforms;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:106331. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.