The euro crisis: a view from the North
AbstractThe paper provides an overview of the sovereign debt crisis. I first consider the build-up of the crisis.I then discuss policy choices when a financial crisis erupts and assess the adjustment processes in the crisis countries, including alternatives to policies of austerity. Finally I take up institutional improvements that can help in resolving the current crisis and avoiding a future one. These include the banking union and the strengthened Stability and Growth Pact and related institutional rules. Current high levels of public and private debt together with still weak bank balance sheets are a major unsolved problem.
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Bibliographic InfoPaper provided by Bank of Finland in its series Research Discussion Papers with number 12/2013.
Length: 28 pages
Date of creation: 28 Jun 2013
Date of revision:
Publication status: Published as Honkapohja, Seppo, 'The euro area crisis: a view from the North' in Journal of Macroeconomics, 2014, pages 260-271.
financial crisis; sovereign debt; European integration;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-CBA-2013-07-20 (Central Banking)
- NEP-EEC-2013-07-20 (European Economics)
- NEP-MAC-2013-07-20 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Working Paper Series, Peterson Institute for International Economics
WP11-10, Peterson Institute for International Economics.
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Essays and Lectures
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- Gylfason, Thorvaldur & HolmstrÃ¶m, Bengt & Korkman, Sixten & SÃ¶derstrÃ¶m, Hans Tson & VihriÃ¤lÃ¤, Vesa, . "Nordics in Global Crisis. Vulnerability and resilience," ETLA B, The Research Institute of the Finnish Economy, The Research Institute of the Finnish Economy, number 242, Spring.
- Andrea Vaona, 2014. "The Price-Price Phillips Curve in Small Open Economies and Monetary Unions: Theory and Empirics," Kiel Working Papers 1904, Kiel Institute for the World Economy.
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