Attempts of the European Union to Conteina the Financial Crisis
This paper centers on how after banks in mature economies worldwide failed to manage risk and allocating capital properly, both single national and joint efforts of the EU (with special focus on the Eurozone) were channeled to control the deepening financial crisis since September 2008. The paper is analyzing the reasons for the financial crisis, simultaneously reviewing the discussions on the profound changes in the global financial system in recent years focusing on the excess capacities created in the system and their consequences (the more rapid growth in financial assets compared to the growth in global GDP, the new institutional structure, complexity in financial instruments, increased counterparty risks etc.). The evolvement of the crisis is presented. The challenges to the implementation of the USA bail-out program as a response to the crisis are examined. Investigating the common and individual efforts in the EU to control the crisis the decisions of the emergency summit of euro zones nations, the national rescue plans of euro-zone and non-euro-zone countries are studied. The EU stimulus package is evaluated, creating a greater flexibility of Eurozone countries with the Stability and Growth Pact, showing the big differences in the fiscal stances of individual countries, their impact on the contributions to the plan, and the heterogeneity of measures to be applied. Special attention has been put on the recapitalization schemes, the issue on state aid and their long-term impact within the EU. The outcomes of the meeting of G20 are also considered. On the basis of the study main concluding remarks have been drawn.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: 3, Aksakov Str., 1040, Sofia|
Phone: (+359 2) 810 40 18
Fax: (+359 2) 988 21 08
Web page: http://www.iki.bas.bg
More information through EDIRC
References listed on IDEAS
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.:
- Con Keating & Hyun Song Shin & Charles Goodhart & Jon Danielsson, 2001. "An Academic Response to Basel II," FMG Special Papers sp130, Financial Markets Group.
- Claudia M. Buch & Kai Carstensen & Andrea Schertler, 2005.
"Macroeconomic Shocks and Foreign Bank Assets,"
Kiel Working Papers
1254, Kiel Institute for the World Economy.
When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2009:i:1:p:119-135. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.