The Eurozone Crisis: Institutional Setting, Structural Vulnerability, and Policies
AbstractThe unfolding of the crisis in the Eurozone can be explained by the interaction of institutional features and policy failures, and by their interconnection with real and financial imbalances. The crisis has shown that internal divergence in the EZ is based on important structural components which are unsustainable in the long run. Indeed, the crisis has magnified the gap between the vulnerable peripheral member countries and a more resilient core. The paper analyses those factors that opened the way to the diffusion of the financial and economic crisis in the Eurozone. It also discusses the structural consequences of these events and critically analyses the institutional and political reforms which the Eurozone is facing in order to enhance its capability to cope with external shocks.
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Bibliographic InfoPaper provided by Public policies and local development in its series Openloc Working Papers with number 1112.
Date of creation: 2011
Date of revision:
Eurozone; European Union; European Monetary Union; euro; Common fiscal parameters; Real convergence; Productivity;
Find related papers by JEL classification:
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-28 (All new papers)
- NEP-CBA-2011-11-28 (Central Banking)
- NEP-EEC-2011-11-28 (European Economics)
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