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Which Future for the Euro?


  • Sanchis i Marco, Manuel


The crisis of the euro became self-evident after the financial markets turmoil which took place during the summer 2007. The global financial crisis cast serious doubts about some dogmas put forward by the defenders of the libertarian capitalism, as the one on the efficiency of financial markets. Whereas in the US several episodes of bankruptcy took place within banks, in the EU the banking sector was recapitalised, fiscal measures were taken to support companies and families, and to stimulate the economy; moreover, an institutional framework was set up to improve the financial regulation and supervision. The banking and financial crisis was followed, as usual, by a debt crisis. In 2010-2011, successive European Summits accelerated the building up of financial facilities and rescue mechanisms to finance countries facing difficulties and to avoid the contagion effect. Political attention focussed on those funds, hiding the political nature of the euro crisis, and masking the exchange rate and balance of payments disequilibria in the eurozone. To correct them would require now enhanced capital transfers from the EU budget to the peripheral countries, continue internal devaluations of the peripheral countries, and start the internal revaluations in the core countries, namely in Germany.

Suggested Citation

  • Sanchis i Marco, Manuel, 2012. "Which Future for the Euro?," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 21(ex).
  • Handle: RePEc:sdo:regaec:v:21:y:2012:i:ex_3

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    References listed on IDEAS

    1. Verónica Amarante & Ivone Perazzo, 2009. "Crecimiento económico y pobreza en Uruguay, 1991-2006," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, December.
    2. Cornia, Giovanni Andrea, 2012. "Inequality Trends and their Determinants: Latin America over 1990-2010," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    3. Verónica Amarante & Andrés Dean & Rodrigo Arím, 2013. "Unemployment Insurance Design and Its Effects: Evidence for Uruguay," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE, June.
    4. Bruno Martorano, 2014. "The Impact of Uruguay's 2007 Tax Reform on Equity and Efficiency," Development Policy Review, Overseas Development Institute, vol. 32(6), pages 701-714, November.
    5. Arim, Rodrigo & Cruces, Guillermo Antonio & Vigorito, Andrea, 2009. "Programas sociales y transferencias de ingresos en Uruguay: los beneficios no contributivos y las alternativas para su extensión," Políticas Sociales 146, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Amarante, Veronica & Vigorito, Andrea, 2011. "Uruguayâ..s Income Inequality and Political Regimes during 1981â..2010," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    7. Bucheli, Marisa & Furtado, Magdalena, 2005. "Uruguay 1998-2002: la distribución del ingreso en la crisis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    8. repec:unu:wpaper:wp2012-09 is not listed on IDEAS
    9. David De Ferranti & Guillermo E. Perry & Francisco H.G. Ferreira & Michael Walton, 2004. "Inequality in Latin America : Breaking with History?," World Bank Publications, The World Bank, number 15009.
    10. Jorge Notaro, 2005. "Employment and unemployment in Uruguay 1984-2005," Documentos de Trabajo (working papers) 05-02, Instituto de Economía - IECON.
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