 The Twin Crisis: From the Transatlantic Banking Crisis to the Euro Crisis?No disbei187, EIIW Discussion paper from Universitätsbibliothek Wuppertal, University Library Abstract: The Transatlantic Banking Crisis has strongly raised debt-GDP ratios in many OECD countries and this is undermining the economic recovery. As regards the euro zone there are special problems which are partly related to lack of fiscal discipline in Greece and to the Irish economic crisis which - largely unknown - basically reflects total failure of prudential supervision to apply EU directives and legislation, respectively. In this context the issue is raised whether or not there are structural problems with the Euro and monetary integration. Moreover, the debt dynamics of governments are analyzed and specifically the issue whether there is a need for restructuring the debt of Greece. Taking a closer look at the figures for government assets in Greece it seems possible to strongly reduce the debt-GDP ratio mainly by privatization. As regards Ireland one may propose that the European Commission or the European Parliament take the country before the European Court of Justice. Finally, a new approach for determining the optimum debt-GDP ratio is presented. Keywords: Integration; Debt Crisis; Fiscal Policy; Optimum Debt Ratio (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bwu:eiiwdp:disbei187 Access Statistics for this paper More papers in EIIW Discussion paper from Universitätsbibliothek Wuppertal, University Library |
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