The Euro and International Financial Stability

The Euro and International Financial Stability

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As a result of the financial crisis, the weaknesses of the Eurozone, including the public debt crisis, materialized in severe depressions in certain of its country members. In this monograph, the author analyzes structural weaknesses of the Eurozone and argues that they can be traced to (i) institutional differences, (ii) differences in the economic structures, (iii) the fundamental inability of European Bureaucracy to deal with crises, and (iv) the extreme rigidity of markets which prevents a general equilibrium in product and credit markets. He concludes that whether the Eurozone is sustainable, depends on future monetary and credit policies, and discusses the implications of reforming it in the best interest of the international banking and financial system. The recent policies of the ECB of a€œcheapa€ credit expansion are examined in detail. The approach of the work is along the lines of von Misesa€™ and Hayeka€™s Austrian tradition; additionally, substantive international empirical evidence supporting this Austrian approach is presented.Moreover, the default of a country would probably affect negatively the domestic banking system and have a domino ... It tends to blend together two, almost unrelated, issues: The debt crisis of the European South on the one hand, and the ... Commissiona#39;s concerns, and it could have been settled on the basis of bilateral negotiations between Greece and its debtors. ... the Southern European sovereign debt became an Eurozone problem was an arbitrary decision and it does not followanbsp;...

Title:The Euro and International Financial Stability
Author:Efthymios Tsionas
Publisher:Springer Science & Business Media - 2013-10-31


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