Euro Crisis: From the Sovereigns to the Banks and Back to the Sovereigns

SUSTAINABLE POLITICS AND THE CRISIS OF THE PERIPHERIES: IRELAND AND GREECE. Advances in Ecopolitics Series Vol. 8, Liam Leonard and Iosif Botetzagias, eds., Emerald Books, 2011

26 Pages Posted: 8 Jul 2011  

Constantin Gurdgiev

Trinity College, Dublin; Middlebury Institute of International Studies at Monterey (MIIS)

Date Written: 2011

Abstract

The global financial crisis of 2007-2009 crystallized the underlying imbalances that are currently acting to tear apart the Euro area monetary and fiscal systems by focusing markets and public attention on the core cause of the overall Euro crisis, the insolvency of the Euro area member-states model of debt financing of public and private expenditure and investment. Hence, any repair of the system will require addressing the twin malaises of the Euro area model of economic development: the private and public sectors debt trap and the social-economic model reliant on deficit financing of public and private consumption and expenditure.

Keywords: Financial Crisis, Euro area crisis, Fiscal Crisis, Economic Development, Debt Crisis, Public Debt, Current Account, External Debt, Euro area debt crisis

JEL Classification: E40, E43, E44, E60, E62, E63, E65, E66, F01, F33, F34, F42

Suggested Citation

Gurdgiev, Constantin, Euro Crisis: From the Sovereigns to the Banks and Back to the Sovereigns (2011). SUSTAINABLE POLITICS AND THE CRISIS OF THE PERIPHERIES: IRELAND AND GREECE. Advances in Ecopolitics Series Vol. 8, Liam Leonard and Iosif Botetzagias, eds., Emerald Books, 2011. Available at SSRN: https://ssrn.com/abstract=1881444 or http://dx.doi.org/10.2139/ssrn.1881444

Constantin Gurdgiev (Contact Author)

Trinity College, Dublin ( email )

Trinity College
Dublin 2

Middlebury Institute of International Studies at Monterey (MIIS) ( email )

460 Pierce St
Monterey, CA 93940
United States

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