IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Role of Institutional and Political Factors in the European Debt Crisis

  • Carlo Panico
  • Francesco Purificato

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.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP280.pdf
Download Restriction: no

Paper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp280.

as
in new window

Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:uma:periwp:wp280
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/
Email:


More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Jürgen von Hagen & Susanne Mundschenk, 2002. "Fiscal and Monetary Policy Coordination in EMU," Working Papers Central Bank of Chile 194, Central Bank of Chile.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. André Sapir & Jean Pisani-Ferry & Zsolt Darvas, 2011. "A comprehensive approach to the euro-area debt crisis," Policy Briefs 491, Bruegel.
  7. 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.
  8. Valiante, Diego, 2011. "The Eurozone Debt Crisis: From its origins to a way forward," CEPS Papers 5985, Centre for European Policy Studies.
  9. 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.
  10. 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.
  11. Mayer, Thomas & Gros, Daniel, 2011. "Debt reduction without default?," CEPS Papers 4150, Centre for European Policy Studies.
  12. Carlo Panico & Francesco Purificato, 2010. "European Policy Reactions to the Financial Crisis," STUDI ECONOMICI, FrancoAngeli Editore, vol. 0(100), pages 191-218.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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 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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.