The Public Debt Of Countries From Euro Zone. The Snowball Effect
AbstractFive years after the start of the worst financial and economic crisis since the end of the World War II the euro area countries are confronted with the persistence of the public debt crisis. The recent literature on macro-financial topics identifies the main factors that determined the launch of the sovereign debt crisis in Europe. One of the consequences of this crisis consists in the public debt effect. Several European countries pay an interest rate higher than the nominal GDP rate, leading to a snowball effect for the public debt. This short article reviews the main factors that determined the launch of the sovereign debt crisis and computes the public debt effect for the Euro Zone (12) member countries.
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Bibliographic InfoArticle provided by Centre of Financial and Monetary Research "Victor Slavescu" in its journal Studii Financiare (Financial Studies).
Volume (Year): 16 (2012)
Issue (Month): 3 ()
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public debt crisis; snowball effect; Euro Zone; interest rate spread;
Find related papers by JEL classification:
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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