The Role of Institutional and Political Factors in the European Debt Crisis
Panico and Purificato argue that before 2007, flaws in the European institutional organization affected the cyclical and growth performance of the euro countries. After that date they contributed to an intensification of the conflicts among national political bodies and between them and the European authorities. These conflicts have favored the speculative attacks against some Government debts and exposed the peculiar conditions under which central banking is carried out in the euro area. They conclude that the institutional organization of the euro area must be reformed in such a way as to allow it to effectively pursue the objectives for which it was created, i.e. to protect the economies and the citizens from the instability of the international financial markets. The reforms must remove, as has been done in monetary policy, the cause of the “moral hazard” problem, i.e. the uncertainty as to the actual conduct of fiscal policy, and transform the current defensive attitudes of the different actors of the coordination process (i.e. the national political authorities and the central bank) into a cooperative and positive search for the most convenient mix of monetary and fiscal policy for the whole area.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: 418 N Pleasant St, Amherst MA 01002|
Phone: (413) 545-6355
Fax: (413) 545-2921
Web page: http://www.peri.umass.edu/
More information through EDIRC
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.:
- Mayer, Thomas & Gros, Daniel, 2011. "Debt reduction without default?," CEPS Papers 4150, Centre for European Policy Studies.
- Roel M. W. J. Beetsma & Xavier Debrun, 2005.
"Implementing the Stability and Growth Pact; Enforcement and Procedural Flexibility,"
IMF Working Papers
05/59, International Monetary Fund.
- Beetsma, Roel & Debrun, Xavier, 2005. "Implementing the stability and growth pact: enforcement and procedural flexibility," Working Paper Series 0433, European Central Bank.
- Beetsma, Roel & Debrun, Xavier, 2005. "Implementing the Stability and Growth Pact: Enforcement and Procedural Flexibility," CEPR Discussion Papers 5005, C.E.P.R. Discussion Papers.
- Jürgen von Hagen & Susanne Mundschenk, 2002.
"Fiscal and Monetary Policy Coordination in EMU,"
Working Papers Central Bank of Chile
194, Central Bank of Chile.
- Carlo Panico & Francesco Purificato, 2010. "European Policy Reactions to the Financial Crisis," STUDI ECONOMICI, FrancoAngeli Editore, vol. 0(100), pages 191-218.
- Eckhard Hein & Achim Truger, 2006. "Fiscal Policy and Macroeconomic Performance in the Euro area - Lessons for the Future," IMK Working Paper 07-2006, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Antonio Fat·s & Ilian Mihov, 2003. "On Constraining Fiscal Policy Discretion in EMU," Oxford Review of Economic Policy, Oxford University Press, vol. 19(1), pages 112-131.
- J. De Haan & W. Kooi, 1997.
"What really matters: conservativeness or independence?,"
Banca Nazionale del Lavoro Quarterly Review,
Banca Nazionale del Lavoro, vol. 50(200), pages 23-38.
- J. De Haan & W. Kooi, 1997. "What really matters: conservativeness or independence?," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 50(200), pages 23-38.
- André Sapir, 2011.
"A Comprehensive Approach to the Euro-Area Debt Crisis,"
ULB Institutional Repository
2013/174297, ULB -- Universite Libre de Bruxelles.
- Zsolt Darvas & Jean Pisani-Ferry & André Sapir, 2011. "A Comprehensive Approach to the Euro-Area Debt Crisis," Working Papers 1101, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest.
- André Sapir & Jean Pisani-Ferry & Zsolt Darvas, 2011. "A comprehensive approach to the euro-area debt crisis," Policy Briefs 491, Bruegel.
- Zsolt Darvas & Jean Pisani-Ferry & Andre Sapir, 2011. "A Comprehensive Approach to the Euro-Area Debt Crisis," IEHAS Discussion Papers 1110, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Jakob de Haan, 1997.
"The European Central Bank: Independence, accountability and strategy: A review,"
Springer, vol. 93(3), pages 395-426, December.
- de Haan, Jakob, 1997. "The European Central Bank: Independence, Accountability and Strategy: A Review," Public Choice, Springer, vol. 93(3-4), pages 395-426, December.
- Ben S. Bernanke & Frederic S. Mishkin, 1997.
"Inflation Targeting: A New Framework for Monetary Policy?,"
NBER Working Papers
5893, National Bureau of Economic Research, Inc.
- Ben S. Bernanke & Frederic S. Mishkin, 1997. "Inflation Targeting: A New Framework for Monetary Policy?," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 97-116, Spring.
- Valiante, Diego, 2011. "The Eurozone Debt Crisis: From its origins to a way forward," CEPS Papers 5985, Centre for European Policy Studies.
- Clas Wihlborg & Thomas D. Willett & Nan Zhang, 2010. "The Euro Crisis," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 11(4), pages 51-79, October.
When requesting a correction, please mention this item's handle: RePEc:uma:periwp:wp280. 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: (Judy Fogg)
If references are entirely missing, you can add them using this form.