TY - JOUR
T1 - Eurozone crisis
T2 - beggar thyself and thy neighbour
AU - Lapavitsas, Costas
AU - Kaltenbrunner, Annina
AU - Lindo, Duncan
AU - Michell, J.
AU - Painceira, Juan Pablo
AU - Pires, Eugenia
AU - Powell, Jeff
AU - Stenfors, Alexis
AU - Teles, Nuno
PY - 2010/12/9
Y1 - 2010/12/9
N2 - The sovereign debt crisis that broke out in Greece at the end of 2009 is fundamentally due to the precarious integration of peripheral countries in the eurozone. Its immediate causes, however, lie with the crisis of 2007–2009. Speculative mortgage lending by US financial institutions and trading of resultant derivative securities by international banks created a vast bubble in 2001–2007, leading to crisis and recession. State provision of liquidity and capital in 2008–2009 rescued the banks, while state expenditure prevented a worsening of the recession. The result in the eurozone was a sovereign debt crisis, exacerbated by the structural weaknesses of monetary union.
AB - The sovereign debt crisis that broke out in Greece at the end of 2009 is fundamentally due to the precarious integration of peripheral countries in the eurozone. Its immediate causes, however, lie with the crisis of 2007–2009. Speculative mortgage lending by US financial institutions and trading of resultant derivative securities by international banks created a vast bubble in 2001–2007, leading to crisis and recession. State provision of liquidity and capital in 2008–2009 rescued the banks, while state expenditure prevented a worsening of the recession. The result in the eurozone was a sovereign debt crisis, exacerbated by the structural weaknesses of monetary union.
KW - euro
KW - Eurozone
U2 - 10.1080/19448953.2010.510012
DO - 10.1080/19448953.2010.510012
M3 - Article
SN - 1944-8953
VL - 12
SP - 321
EP - 373
JO - Journal of Balkan and Near Eastern Studies
JF - Journal of Balkan and Near Eastern Studies
IS - 4
ER -