Volume : IV, Issue : VI, June - 2014

The Eurozone Crisis: Origins and Implications

Kalpana Hooda

Abstract :

The sovereign debt problems in the peripheral economies of the euro zone has started to pose a serious threat to the main economies of the Europe and perhaps to the future of the ‘euro’ itself. Such a situation is a far cry from the optimism and grand vision that marked its launch. For several years prior to 2010, countries in the euro area periphery engaged in heavy borrowing from foreign private investors, allowing domestic spending to outpace incomes. Now these countries face debt crises reflecting a loss of investor confidence in the sustainability of their finances. The result has been an aupt halt in private foreign lending to these economies. This study reviewed how the periphery countries became dependent on foreign borrowing and considers the challenges they face reigniting growth while adjusting to greatly reduced access to foreign capital.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Kalpana Hooda The Eurozone Crisis: Origins and Implications Indian Journal of Applied Research, Vol.IV, Issue.VI June 2014

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