Cause of crisis
How sovereign debt crisis impact the world
ongoing sovereign debt crises and effort to end that
Expectations for the future of the Euro-zone
① Deeping disparities between Eurozone countries from single exchange rate
▲ EURO doesn’t represent economic situation of individual countries
▲ Greece used overvalued money compare to their economic level
▲ So, Greece monetary policy can’t be able to control their economic system
▲ Greece had a boom days due to liquidity extension not because fundamental
Systematical cause
② Absence of financial alliance
▲ Single monetary policy & regional independent financial policy
③ Tolerant attitude to Euro members
▲ Give small penalty to them who violate SGP(stability and growth pact)
▲ Expand recruiting members for political intension
④ Inadequacy of contingency plan
▲ overall measures are incomplete
⑤ Vulnerable to contagion effect
▲ Correlation between EMU is high

분야