Greek Debt Crisis. A Representation of the Eurozone Crisis

Akademische Arbeit , 2018 , 7 Seiten , Note: 1

BWL - Wirtschaftspolitik

Over the years, fiscal crisis in various regions have led to recession which hurts the economies of the concerned countries. Currently, Europe is battling a detrimental debt crisis that has put economic growth across Europe at stake. In this case, Greece is the most hit country by the current European debt crisis because it has huge debt to settle. Ironically, it is quite difficult to experience any significant growth because its competitiveness within the Eurozone remains low, yet it is expected to recover and settle its debts. Greece has no control over the Euro because it is controlled by the European Central Bank that regulates financial flow and rates within the Eurozone. In general, the European debt crisis has affected European countries in different ways. For instance, Greece owes Germany and France a huge government debt. It is estimated that Greece, Portugal and Italy are the biggest debtors within the Eurozone. By the end of the first quarter of 2015, Greece has a government debt to GDP ratio of 168.8%, followed by Italy with 135.1%, whereas Portugal recorded a ratio of 129.6%. On the other hand, the lowest debtors were Bulgaria with the ratio of 29.6%, Luximbourg with 21.6& and Estonia with 10.5%. As a result, the public debt to GDP ratio for the Eurozone has risen to 92.6 percent in the first quarter of 2015 (RT, 2015). Therefore, this article will give a comprehensive overview of the European debt crisis with focus on Greece.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Factors Causing the Eurozone Crisis
• Where Europe Stands Now
• Effect of Government Deficit and Government Debt on Economic Growth
• Policy Responses

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This article aims to provide a comprehensive overview of the European debt crisis, specifically focusing on the Greek debt crisis. It analyzes the factors contributing to the crisis and discusses the current state of the Eurozone in relation to the crisis. Furthermore, the article explores the effects of government deficit and debt on economic growth and examines potential policy responses to the crisis.

• The causes and consequences of the European debt crisis.
• The impact of government deficit and debt on economic growth.
• The role of Greece in the Eurozone crisis.
• Policy responses to the debt crisis, including bailouts and austerity reforms.
• The implications of the crisis for the future of the Eurozone.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: The article introduces the European debt crisis, highlighting the impact on Greece's economy and the broader Eurozone. It also provides a brief overview of the current debt situation within the Eurozone, focusing on the government debt to GDP ratios of various countries.
• Factors Causing the Eurozone Crisis: This section delves into the underlying causes of the Eurozone crisis, including trade imbalances, the lack of a fiscal union, the inflexibility of monetary policy, loss of confidence, and the increase in government and household debt levels.
• Where Europe Stands Now: This chapter discusses the Eurozone's response to the Greek debt crisis, including the bailout package and the agreement for a third economic adjustment program.
• Effect of Government Deficit and Government Debt on Economic Growth: This section examines the impact of government deficit and debt on economic growth, emphasizing their connection to interest rates and investment. It also explores the specific case of Greece, where high government debt has contributed to reduced investment and potentially hindered economic growth.
• Policy Responses: This chapter outlines the two main policy responses to crises within a monetary union: bailouts and austerity reforms. The advantages and disadvantages of each response are discussed, with specific reference to Greece's chosen approach of relying on bailouts.

Schlüsselwörter (Keywords)

The main keywords and focus topics of this article include the European debt crisis, the Greek debt crisis, Eurozone, trade imbalances, fiscal union, monetary policy, loss of confidence, government deficit, government debt, economic growth, bailouts, austerity reforms, and the moral hazard effect. These terms represent the key themes and concepts investigated within the context of the European debt crisis and its implications for Greece and the broader Eurozone.

• Note: 1
• Autor: Caroline Mutuku (Autor:in)
• Erscheinungsjahr: 2018
• Seiten: 7
• Katalognummer: V432500
• ISBN (eBook): 9783668751262
• ISBN (Buch): 9783668751279
• Sprache: Englisch
• Schlagworte: greek, debt, crisis, representation, eurozone