Eurozone public debt problem: an analysis from the perspective of the institutions and policies

Based on a synthetic literature review, the present article summarizes the main characteristics of the Eurozone institutional setup and the related economic and political incentives that drive Eurozone governments to increase their public debts, disregarding the limits agreed in the European treatis...

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Bibliographic Details
Main Author: Ionela Baltatescu
Format: Article
Language:English
Published: Nicolae Titulescu University 2013-05-01
Series:Global Economic Observer
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Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_1_no_1/geo_2013_vol1_art_010.pdf
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Summary:Based on a synthetic literature review, the present article summarizes the main characteristics of the Eurozone institutional setup and the related economic and political incentives that drive Eurozone governments to increase their public debts, disregarding the limits agreed in the European treatises. We propose a theoretical and qualitative approach, taking into account the general features and the nature of Eurozone institutional setup. The second and third part of the paper contains a review of the Eurozone institutional setup and its role in sovereign debt problem of Euro area while the fourth part of the paper carries out a concise analysis of some proposed strategies and policy tools to fight Eurozone debt problem: ECB bond buying, EFSF/ESM leverage, Eurobonds and Euro-TARP.
ISSN:2343-9742
2343-9750