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The crisis of the EMU

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  • Schmid, Peter Alfons

Abstract

The Euro Zone (EZ)’s economies are under great stress since last decade’s financial crisis. Diverging interest rates, high debt burdens and sluggish growth in several member countries led to various rescue activities. Nevertheless, financial markets have still not calmed and the break-up of the EZ is discussed openly. Contrary to the popular belief I show that the Euro itself has been a success story so far but the EZ suffers under a debt crisis and huge economic imbalances. An overhaul of the EZ’s institutional framework, however, is necessary.

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  • Schmid, Peter Alfons, 2012. "The crisis of the EMU," MPRA Paper 40390, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40390
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    References listed on IDEAS

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    More about this item

    Keywords

    financial crisis; Euro crisis; current account imbalances; monetary union;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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