Title: The Sovereign Debt Crisis and Asymmetries within the Euro Area
Abstract: Despite the reasonableness of the institutional design of the euro area,the asymmetries as regards the economic scales and structures among its member countries have increased the cost of policy coordination,while at the same time,the Treaty on European Union has not been strictly observed all the time.Due to the breakout of the European debt crisis,it is obviously insufficient to simply continue the original convergence policy.In this paper,the author argues that it is the asymmetries among and the policy plights within the euro zone countries that have caused the crisis.It is undoubtedly necessary for the euro area to promote structural reforms in order to realize real economic integration,however,a final solution may lie in the fiscal integration,something like an economic federation,otherwise the sovereign debt crisis might lead to a crisis of the euro itself.
Publication Year: 2011
Publication Date: 2011-01-01
Language: en
Type: article
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Cited By Count: 1
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