The Euro Crisis: A Keynesian Perspective

Activity: Talk or presentationScience to science

Description

The Euro crisis is analyzed as a systemic crisis, induced but not caused by the financial crisis. The institutional framework of the Euro-zone, in particluar the stability and growth pact, is unable to cope with the serious long-term implications of differing national trands in competitiveness. The latter are caused by the deep rooted institutional differences between Euro-zone member states. The classical deflationary adjustment mechanism, as it worked under conditions of the "gold standard" in the 19th century cannot expected to work under conditions of financial integration and, in particular, needs to much time to be sustainable under democratic political onditions. If some countries, who are unable to adjust via internal devaluation, are forced to pursue that path, political restistance will sooner or later enforse an exit from the Euro-zone.
Period1 Apr 2012
Event titleConference:
Event typeUnkonwn
Degree of RecognitionInternational