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The eurozone crisis: phoenix miracle or lost decade?

Author

Listed:
  • Barry Eichengreen

    (University of California)

  • Naeun Jung

    (Princeton University)

  • Stephen Moch

    (Princeton University)

  • Ashoka Mody

    (Princeton University)

Abstract

We analyze why the Eurozone crisis increasingly resembles Latin America’s lost decade instead of Asia’s phoenix miracle, emphasizing the roles of the real exchange rate, the external environment, and debt restructuring. In addition, we contrast the adjustment to housing bubbles in Ireland, Spain and the U.S. Here our explanation for the contrast departs from the conventional wisdom in placing less emphasis on labor mobility but more on participation rates and bank mergers and acquisitions in the adjustment process.

Suggested Citation

  • Barry Eichengreen & Naeun Jung & Stephen Moch & Ashoka Mody, 2013. "The eurozone crisis: phoenix miracle or lost decade?," Special Conference Papers 25, Bank of Greece.
    • Handle: RePEc:bog:spaper:25
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    Keywords

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • G01 - Financial Economics - - General - - - Financial Crises

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