The European Crisis Without End: The Consequences of European Monetary Integration
DOI:
https://doi.org/10.18533/ijbsr.v6i8.965Keywords:
Fiscal policy, macroeconomic policy coordination, monetary policy, sovereign debts crisis.Abstract
This study tackles the Euro-Zone sovereign debts through recognizing the crisis origins, reasons, and the stages it has gone through to decide on its financial and economic effects and the approaches to deal with these effects. The study concludes that there is a real crisis at the European monetary system mechanism besides a lack of any implementable mechanism regarding growth and convergence among the Euro-Zone countries. Add to that the absence of a united financial policy for these countries. The study has approached some recommendations among which: the necessity to expedite the adoption of a united financial policy for all the Euro-Zone countries, the necessity to activate the role of the European Central Bank, the necessity to create mechanisms that can confront any emerging crises in the future.
References
Allen, W. A. and Moessner, R., 2012." The liquidity Consequences of The Euro Area Sovereign Debt Crisis." BIS Working Papers No.390, Bank of International Statement,Washington Dc, USA.
Anand, M R., Gupta, GL., and Dash R., 2012."The Euro Zone Crisis its Dimensions and Implications." Working Paper No.4764, eSocialSciences Series https://ideas.repec.org/p/ess/wpaper/id4764.html.
Arab Monetary Fund. 2014." Arab Capital Markets, 2st Quarter Bulletin (2010-2014)." Abu Dhabi, UAE, Available at http://www.amf.org.ae/ar.
Arghyrou, M. G., and Kontonikas, A.,.2011." The EMU sovereign-debt crisis: Fundamentals, expectations and contagion." Economic Papers No.436, European Commission, Brussels, Belgium.
Beker, V. A. 2014." The European Debt Crisis: Causes and Consequences." J Stock Forex Trad, Volume 3, Issue 2, P.P1-9.
Blanchard, O.J. and Watson M. W.. 1982. "Bubbles, rational expectations, and financial markets." Crises in the Economic and Financial Structure, Paul Wachtel, editor, pp. 295-316. Lexington, MA: D.C. Heathand Company, Massachusetts, USA.
Bordo, M., Meissner C.,, Angela Redish. 2003."How "Original Sin" Was Overcome: The Evolution of External Debt Denominated in Domestic Currencies in the United States and the British Dominions 1800-2000." NBER Working Paper No.9841, National Bureau of Economic Research, Massachusetts, Cambridge.
Bush, K., Herman, C., Hinirichs, K. and Schgulten, T., 2013." Euro crisis, Austerity policy and the European social model, How the crisis plaices in southern Europe threaten the EU's social Dimension." Fredric- Ebert- Siftung, International policy analysis,Hiroshimastrabe, Berlin, Germany.
Bussiere, M. and Fratzscher, M.,.2002." Towards Anew Early Warning System of Financial Crises." Working Paper No. 145,European Central Bank, Frankfurt, Germany.
Chinn, M.D., and Jeffry A. Frieden.2012." The Eurozone in Crisis: Origins and Prospects." La Follette Policy Report, Volume 21, Issue 2,P.P 1-5.Available at https://dash.harvard.edu/handle/1/10212562.
Classens,Stijn and M. Ayhan Kose.2013."Financial crisis, Explanation, Types, and Implications." IMF working paper No.13/28, Research department, International Monetary Fund, Washington Dc. USA
Dahush, Uri et al,.2010." Paradigm Lost The Euro In Crisis." Carnegie Endowment for International Peace, Washington D.C, USA. Available at http://carnegieendowment.org/files/Paradigm_Lost2.pdf.
Darvas, Z., 2012." The euro crisis: ten roots, but fewer solutions." Bruegel Policy Contribution, Issue 2012/17, Brussels, Belgium. Available at http://bruegel.org/wp-content/uploads/imported /publications/pc_2012_17.pdf.
Diamond, D. and Dybvig, P. 1983. "Bank runs, deposit insurance and liquidity." Journal of Political Economy, Volume 91, Issue 3, P.P 401–19.
Eichengreen, B. et al,. 2011."Public Debts: Nuts, Bolts and Worries." Geneva Reports on the World Economy 13, International Center for Monetary and Banking Studies, Geneva, Switzerland. Available at http://voxeu.org/sites/default/files/file/Geneva13.pdf.
European Commission. 2009." Impact of the current Economic and financial crisis on potential output." Occasional Papers 49, Directorate-General for Economic and Financial Affairs Publications, European Commission, Brussels, Belgium.
European Commision.2011."Statistical Annex of European Economy." Directorate-General for Economic and Financial Affairs Publications, European Commission Autumn 2011, Brussels, Belgium.
Eurostat. 2015."Annual Growth of government Expenditure" Eurostat data Base, Available at http://ec.europa.eu/eurostat/data/database,Visit date 24/12/2015.
Ewaida, H., 2015." The World Financial Crisis and Its Regional Reflections: A Case Study (Dubai and Greece 2009-2010)". Book, First Edition, Dar Weal, Amman, Jordan.
Fernandes, A. L. C., and Mota P. R., 2011. " The Roots of The Eurozone Sovereign Debt Crisis: PIGS VS Non- PIGS." Panoeconomicus, Volume 58, Issue 5, P.P 631-649.
Fisher, I., 1933. "The Debt-Deflation Theory of Great Depressions", Econometrica Volume 1, Issue 4, P.P 337-357.
Flandreau, M. and Flores, J., 2010."Bondholders versus bond-sellers? Investment banks and conditionality lending in the London market for foreign government debt, 18151913." European Review of Economic History, Volume 16,Issue 4, P.P 356-383.
Flood, R.P. and Peter M. Garber 1984. "Collapsing exchange rate regimes: some linear examples." Journal of International Economics, Volume 17, Issues 1–2, P.P 1-13.
Freire, A. et al,. 2014." Special Issue: Political Representation in Times of Bailout: Evidence from Greece and Portugal." South European Society and Politics, Volume 19, Issue 4, P.P 413-433.
Friedman, M., and Anna J. Schwartz.1963. "A Monetary History of the United States, 1867-1960." Princeton: Princeton University Press, New Jersey, USA.
FES.2013." Future Scenarios for the Eurozone 15 Perspectives on the Euro Crisis." International Policy Analysis, Friedrich-Ebert-Stiftung, Berlin, Germany.
Glencross, A. 2013."The EU Response to The Euro zone Crisis: Democratic Contestation and The New Fault. Lines in European Integration." Discussion Paper 3/13, Europa-Kolleg Hamburg Institute for European integration, Hamburg, Germany.
Guraziu, R., Epidamn Zeqo.2012. "The Sovereign Debt Crisis and its Impact on World Markets." International Business and Diplomatic Exchange, London, UK. Available at http://www.ibde.org.
Hatchondo, JC., Leonardo Martinez, and Horacio Sapriza.2010." The Economics of Sovereign Defaults." Economic Quarterly, Volume 93, Issue 2, P.P 163–187.
Hawtrey, R. G. 1926." The Economic Problem", The Economic Journal, Volume 36, Issue 144, P.P 606-610.
Hodson, D. and Lucia Quaglia.2009." European Perspectives on The Global Financial Crisis: Introduction." Journal of Common Market Studies, Volume 47, Issue 5,P.P 939–953.
IMF.2009." Responding to the Financial Crisis and Measuring Systemic Risks." Global Financial Stability Report, International Monetary Fund, Washington, DC :USA.
IMF.2010." Sovereigns, Funding, and Systemic Liquidity." Global Financial Stability Report, International Monetary Fund, Washington, DC :USA.
IMF.2010." Meeting New Challenges to Stability and Building a Safer System." Global Financial Stability Report, International Monetary Fund, Washington DC,USA .
IMF.2011." Grappling with Crisis Legacies. " Global Financial Stability Report, International Monetary Fund, Publications Services,Washington, DC : USA.
IMF.2014."World Economic Outlook Update" Different Report(2010-2014), International Monetary Fund, Publications Services,Washington, DC: USA.
IMF.2014." Back To Work: How Fiscal Policy Can Help " Fiscal Monitor Report, International Monetary Fund, Publications Services,Washington, DC :USA.
Jackson, J.K. 2009." The Financial Crisis: Impact on and Response by The European Union" CRS Report for Congress R40415, Congressional Research Service, Available at http://www.crs.gov/
Kindleberger, C. P. 1975." The World in Depression, 1929-1939" University of California Press,USA.
Kraemer,M..2013. "The Euro zone Debt Crisis: 2013 Could Be A Watershed Year." Standard & Poor's Financial Services LLC, January 9,2013. Available at https://www.standardandpoors.com.
Kraemer, M.2014." Global Sovereign Rating Trends Mid-Year 2014." Standard & Poor's Financial Services LLC,MC Graw Hill Financial.July 2014.Available at http://www.maalot.co.il/publications/ART20140714145433.pdf.
Kregel, J.2012."Six Lessons From The Euro Crisis."Policy Note, levy Economics institute of Bard College 2010/10, NY, USA. Available at http://www.levyinstitute.org./
Krugman, P.1979. "A model of balance of payments crises", Journal of Money, Credit, and Banking, Volume 11, Issue 3, P.P 311-325.
Lachman, D.2013." Lessons from Europe’s Debt Crisis for the United States." Cato Journal, Volume 33, Issue 2, P.P234-243.
Laeven, L. and Fabian Valencia.2012." Resolution of Banking Crises: The Good, the Bad, and the Ugly." IMF Working Paper 10/146,Washinton DC,USA.
Li Na, Shi Minjun,and Huang Wen.2012." Impacts of the Euro sovereign debt crisis on global trade and economic growth: A General Equilibrium Analysis based on GTAP model." Available at https://www.gtap.agecon.purdue.edu
Lindert, P. H., and Peter J. Morton.1989."How Sovereign Debt Has Worked." In Developing Country Debt and Economic Performance, Volume 1, the International Financial System, ed. J. D. Sachs, 39–106. Chicago: University of Chicago Press.
Mamede,R. Paes.2012." Causes, Consequences, and Ways out of the crisis: a EU’s periphery." Green european journal, Volume 1, P.P 31-46.
Minescu, Ana-Maria.2011." The Debt Crisis – Causes and implications." Economic sciences series, Vol. LXIII, Issue 2, P.P 95–104.
Minsky, H..1975. "The Financial Instability Hypothesis: An Interpretation of Keynes and an Alternative to "Standard Theory"" (1975). Hyman P. Minsky Archive. Paper 38. Available at http://digitalcommons.bard.edu/hm_archive/38.
Mishkin, F. S. 1996. "Understanding Financial Crises: A Developing Country Perspective." NBER Working Paper 5600, National Bureau of Economic Research, Massachusetts, Cambridge.
Mistral, J.2010."The Sovereign Debt Crisis and the Future of the Euro." Studies Centre economic, French Institute for International Relations, Paris, France.
Nelson,R.M., Paul Belkin, Derek E. Mix and Martin A. Weiss.2012." The Euro zone Crisis: Overview and Issues for Congress." CRS Report for Congress R42377, Congressional Research Service, Available at http://www.crs.gov/.
OCED.2015." different statistic."Statistical Data, Available at http://www.oecd.org.
Overbeek,Henk.2012."Sovereign Debt Crisis in Euro land: Root Causes and Implications for European Integration." Italian Journal of International Affairs, Volume 47, Issue 1, 2012, P.P 30-48.
Oxford Economics.2010." European Sovereign Debt Crisis: How Might it Impact Your Business." Oxford Economics Publication, Oxford, UK.
Palley,T. I..2013." Europe's Crisis Without End, The Consequences of Neoliberalism." Contributions to Political Economy,Volume 32, Issue 1. P.P 29-50.
Perotti,R..2011." The Sovereign Debt Crisis in Europe: Lessons from The past, Questions for the Future." Available at http://www.rperotti.com/corso30030/recent_developments.pdf.
Reinhart,C. M., and Kenneth S.Rogoff.2009." This Time Is Different: Eight Centuries of Financial Folly." Princeton University Press, New Jersey 08540,USA.
Reinhart,C. M., and Kenneth S. Rogoff.2013." Financial and Sovereign Debt Crises: Some Lessons Learned and Those Forgotten" IMF Working Paper No 13/266, International Monetary Fund, Washington DC,USA.
Reinhart, C. M. and Kenneth S. Rogoff, 2014. "Recovery from Financial Crises: Evidence from 100 Episodes," American Economic Review, American Economic Association, Volume 101,Issue 5, P55.
Roland,D., Rachel Cooper, and Andrew Trotman.2013." Cyprus Bail-out: as it Happened." The Telegraph, March 21, 2013.Available at http://www.telegraph.co.uk/finance/debt-crisis-live/9947568/Cyprus-bailout-live.html.
Sachs,J. D.1995. "Alternative Approaches to Financial Crises in Emerging Markets." The paper was prepared at background for discussion during meetings in Basel, SZ, December 9-10, 1995.P1. Available at http://earth.columbia.edu/sitefiles/file/about/director/documents/jrnrep0696.pdf.
Salant, W. and Dale W. Henderson. 1978. "Market Anticipation of Government Policies and the Price of Gold." Journal of Political Economy, Valoume86,Issue4, P.P 627–648.
SESRIC.2011."A Second Wave of the Global Crisis ?The Eurozone Debt Crisis". SESRIC Paper No. 8,Issue 1, Statistical Economic and social Research and Training Centre For Islamic Countries. Available at http://www.sesrtcic.org/files/article/442.pdf.
Stracca, L..2013." The global effects of the euro debt crisis." Working paper series No 1573, European central bank,Frankfort, Germany.
Taylor,S. F.2011." Financial Crisis in the European Union: The Cases of Greece and Ireland". Thesis Master of Arts in Political Science, faculty of the Virginia Polytechnic Institute and State University, Virginia, USA.
Taylor, J. B. 2002. "Sovereign Debt Restructuring: A U.S. Perspective." Speech at the Institute for International Economics Conference on Sovereign Debt Workouts: Hopes and Hazards, Washington, DC, April 2. Available at https://piie.com/commentary/speeches-papers/sovereign-debt-restructuring-us-perspective
Trigo, P.2013."The Troika Should recognize The Efforts Made by Portugal to Rebalance its finances and adjust The country's Bail-out Conditions."Available at http://blogs.lse.ac.uk/europpblog/2013/03/07/portugal-bailout/.
Veblen, T.1904." The Theory of the Business Enterprise." New Brunswick, New Jersey: Transaction Books, P. 62.
Weidemaier, M. C.2012." Sovereign Immunity and Sovereign Debt ". UNC Legal Studies Research Paper No. 2180228. Available at http://ssrn.com/abstract=2180228.
WTO. 2011."International trade statistic 2001." World Trade Organization, Geneva, Switzerland. Available at https://www.wto.org/.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
