IDEAS home Printed from https://ideas.repec.org/a/wfo/wquart/y2012i2p95-107.html
   My bibliography  Save this article

The Sovereign Debt Crisis: Causes and Consequences

Author

Listed:
  • Gunther Tichy

    (WIFO)

Abstract

The quasi-global sovereign debt crisis is currently the focus of the political debate and of media attention. The origins of the crisis have long been considered too narrowly, with often one-dimensional solutions being proposed. A somewhat more comprehensive approach was first adopted at the EU Council Meetings of October and December 2011, thereby providing a major step towards the resolution of the most pressing problems. Tighter fiscal policy and more ample resources for the stabilisation fund are important moves. Nevertheless, a lasting solution must take a broader perspective and address certain deficiencies in the setup of EMU that were brought to the fore by the uneven economic performance of its members.

Suggested Citation

  • Gunther Tichy, 2012. "The Sovereign Debt Crisis: Causes and Consequences," Austrian Economic Quarterly, WIFO, vol. 17(2), pages 95-107, May.
    • Handle: RePEc:wfo:wquart:y:2012:i:2:p:95-107
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/44297
    File Function: abstract
    Download Restriction: Payment required
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anonymous, 2002. "Results of Bulletin readers survey," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 65, september.
    2. מחקר - ביטוח לאומי, 2002. "Annual Survey 2001," Working Papers 14, National Insurance Institute of Israel.
    3. D. Colander & H. Follmer & A. Haas & M. Goldberg & K. Juselius & A. Kirman & T. Lux & B. Sloth, 2010. "The Financial Crisis and the Systemic Failure of Academic Economics," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    4. Juan J. Cruces & Christoph Trebesch, 2013. "Sovereign Defaults: The Price of Haircuts," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(3), pages 85-117, July.
    5. Ponticelli, Jacopo & Voth, Hans-Joachim, 2020. "Austerity and anarchy: Budget cuts and social unrest in Europe, 1919–2008," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 1-19.
    6. מחקר - ביטוח לאומי, 2004. "Annual Survey 2002-2003," Working Papers 21, National Insurance Institute of Israel.
    7. Kopf, Christian, 2011. "Restoring financial stability in the euro area," CEPS Papers 4292, Centre for European Policy Studies.
    8. Gunther Tichy, 2009. "Einige unkonventionelle Gedanken zum Leben nach der Krise," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 35(4), pages 501-513.
    9. Helmuth Cremer & ) & Pierre Pestieau, 2003. "Wealth Transfer Taxation: A Survey," Public Economics 0311003, University Library of Munich, Germany.
    10. Xavier Sala-i-Martin & Jeffrey Sachs, 1991. "Fiscal Federalism and Optimum Currency Areas: Evidence for Europe From the United States," NBER Working Papers 3855, National Bureau of Economic Research, Inc.
    11. Carmen M. Reinhart & Vincent Reinhart, 2010. "After the fall," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 17-60.
    12. anonymous, 2005. "Basel II survey documents finalized," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Win, pages 1-40.
    13. Anonymous, 2009. "Abstract of the discussion," British Actuarial Journal, Cambridge University Press, vol. 15(1), pages 202-217, March.
    14. Thomas Url, 2012. "Rating Agencies: Creating, Amplifying or Drawn by Events in the Sovereign Debt Crisis?," Austrian Economic Quarterly, WIFO, vol. 17(2), pages 108-121, May.
    15. Mr. Luc Laeven & Mr. Fabian Valencia, 2010. "Resolution of Banking Crises: The Good, the Bad, and the Ugly," IMF Working Papers 2010/146, International Monetary Fund.
    16. Fritz Breuss & Serguei Kaniovski & Margit Schratzenstaller-Altzinger, 2009. "Gesamtwirtschaftliche Effekte der Konjunkturbelebungsmaßnahmen," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(9), pages 675-686, September.
    17. Gunther Tichy, 2010. "War die Finanzkrise vorhersehbar?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(4), pages 356-382, November.
    18. מחקר - ביטוח לאומי, 2005. "Annual Survey 2004," Working Papers 16, National Insurance Institute of Israel.
    19. Franz R. Hahn, 2010. "Financial Market Regulation," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 94-97, April.
    20. Thomas Url, 2010. "Financial Market Crisis: Origin, Short-Term Reaction and Long-Term Adjustment Requirements," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 54-77, April.
    21. repec:mpr:mprres:4946 is not listed on IDEAS
    22. repec:wsr:pbrief:y:2011:i:012 is not listed on IDEAS
    23. Stephen Cecchetti & Madhusudan Mohanty & Fabrizio Zampolli, 2011. "The real effects of debt," BIS Working Papers 352, Bank for International Settlements.
    24. מחקר - ביטוח לאומי, 2007. "Annual Survey 2006," Working Papers 20, National Insurance Institute of Israel.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gunther Tichy, 2011. "Die Staatsschuldenkrise: Ursachen und Folgen," WIFO Monatsberichte (monthly reports), WIFO, vol. 84(12), pages 797-810, December.
    2. Hommes, Cars, 2011. "The heterogeneous expectations hypothesis: Some evidence from the lab," Journal of Economic Dynamics and Control, Elsevier, vol. 35(1), pages 1-24, January.
    3. Consiglio Andrea & Zenios Stavros A., 2015. "Risk Management Optimization for Sovereign Debt Restructuring," Journal of Globalization and Development, De Gruyter, vol. 6(2), pages 181-213, December.
    4. Reinhart, C. M., 2012. "The return of financial repression," Financial Stability Review, Banque de France, issue 16, pages 37-48, April.
    5. Åsa Lindström & Pontus Johnson & Erik Johansson & Mathias Ekstedt & Mårten Simonsson, 2006. "A survey on CIO concerns-do enterprise architecture frameworks support them?," Information Systems Frontiers, Springer, vol. 8(2), pages 81-90, February.
    6. Cars Hommes, 2010. "The heterogeneous expectations hypothesis: some evidence from the lab," Post-Print hal-00753041, HAL.
    7. Salvatore Piccolo & Jeanine Miklós-Thal, 2012. "Colluding through suppliers," RAND Journal of Economics, RAND Corporation, vol. 43(3), pages 492-513, September.
    8. Pierre-Olivier Gourinchas & Maurice Obstfeld, 2012. "Stories of the Twentieth Century for the Twenty-First," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(1), pages 226-265, January.
    9. Helios Herrera & Guillermo Ordoñez & Christoph Trebesch, 2020. "Political Booms, Financial Crises," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 507-543.
    10. Hela Maafi, 2011. "Preference Reversals Under Ambiguity," Management Science, INFORMS, vol. 57(11), pages 2054-2066, November.
    11. Taylor-Clark, Kalahn Alexandra & Mebane, Felicia E. & SteelFisher, Gillian K. & Blendon, Robert J., 2007. "News of disparity: Content analysis of news coverage of African American healthcare inequalities in the USA, 1994-2004," Social Science & Medicine, Elsevier, vol. 65(3), pages 405-417, August.
    12. Carmen M. Reinhart & Vincent R. Reinhart & Kenneth S. Rogoff, 2012. "Public Debt Overhangs: Advanced-Economy Episodes since 1800," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 69-86, Summer.
    13. Ms. Manuela Goretti & Mr. Marcos R Souto, 2013. "Macro-Financial Implications of Corporate (De)Leveraging in the Euro Area Periphery," IMF Working Papers 2013/154, International Monetary Fund.
    14. Anna Wisniewski, 2005. "he impact of Foreign Direct Investment on regional development in Poland," IWE Working Papers 162, Institute for World Economics - Centre for Economic and Regional Studies.
    15. Ekaterina Svetlova & Matthias Fiedler, 2011. "Understanding Crisis: On the Meaning of Uncertainty and Probability," Chapters, in: Óscar Dejuán & Eladio Febrero & Maria Cristina Marcuzzo (ed.), The First Great Recession of the 21st Century, chapter 3, Edward Elgar Publishing.
    16. Branimir Jovanovic, 2012. "How Policy Actions Affect Short-term Post-crisis Recovery?," CEIS Research Paper 253, Tor Vergata University, CEIS, revised 05 Oct 2012.
    17. Christoph A. Schaltegger & Martin Weder, 2013. "Will Europe Face A Lost Decade? A Comparison With Japan's Economic Crisis," CREMA Working Paper Series 2013-03, Center for Research in Economics, Management and the Arts (CREMA).
    18. Joanna Dreger, 2012. "Why Is Sovereign Debt Restructuring a Challenge? The Case of Greece," Bruges European Economic Policy Briefings 24, European Economic Studies Department, College of Europe.
    19. Lans, Cheryl, 2012. "Money and the epistemologies of ignorance concerning climate change," MPRA Paper 62147, University Library of Munich, Germany.
    20. Carmen M. Reinhart & Vincent Reinhart, 2010. "After the fall," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 17-60.

    More about this item

    Keywords

    Euro Crisis Rating Agencies Ratings;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wquart:y:2012:i:2:p:95-107. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.