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The Reasons of Eurozone Sovereign Debt Crisis and an Empirical Analysis over Permanency of the Crisis

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  • Gulbahar UCLER

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ahi Evran University, Turkey.)

  • Hale KIRMIZIOGLU

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ahi Evran University, Turkey)

Abstract

This study aims to review how the Eurozone has been formed and to analyze how it has been formed on weak roots, both in public finance and politics. Contrary to economical ideas, political grounds tested the endeavor of creating a powerful the monetary union. Hence, it was very clean to predict upcoming the debt crisis. According to those assumptions known, pre-crisis problems of the countries has been reviewed. Latter, the crisis' permanency has been tested via PANKPSS if it's permanent or not? Mainstream acknowledgement on the literature agrees on the crisis is permanent and might lead to dire consequences. Nevertheless, nexus between those countries which has been forged by political bounds cannot be broken by that crisis; thus, the Eurozone might not be break down.

Suggested Citation

  • Gulbahar UCLER & Hale KIRMIZIOGLU, 2015. "The Reasons of Eurozone Sovereign Debt Crisis and an Empirical Analysis over Permanency of the Crisis," International Journal of Economics and Financial Issues, Econjournals, vol. 5(1), pages 86-96.
    • Handle: RePEc:eco:journ1:2015-01-07
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    References listed on IDEAS

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    Cited by:

    1. Ghulam, Yaseen & Derber, Julian, 2018. "Determinants of sovereign defaults," The Quarterly Review of Economics and Finance, Elsevier, vol. 69(C), pages 43-55.

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    More about this item

    Keywords

    Eurozone; Sovereign Debt Crisis; Second Generation Unit Root Tests; PANKPSS;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G01 - Financial Economics - - General - - - Financial Crises
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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