GIPSIs

Ramkishen Rajan, Tan Khee Giap and Tan Kong Yam
Additional contact information
Tan Khee Giap: Asia Competitiveness Institute (ACI)
Tan Kong Yam: Asia Competitiveness Institute (ACI)

Chapter 4 in Fiscal Sustainability and Competitiveness in Europe and Asia, 2014, pp 61-106 from Palgrave Macmillan

Abstract: Abstract The Eurozone economies of Greece, Italy, Portugal, Spain, and Ireland (GIPSIs) have been struggling to emerge from their deep and protracted financial crisis for the past six years. The GIPSIs appear to have experienced broadly — but by no means exactly — similar fiscal and competitiveness problems that contributed to the buildup of acute external and internal imbalances since the formation of the Euro. These accumulated imbalances eventually exploded when the global financial crisis struck and caused severe economic contraction. As the GIPSIs find their way out of the woods, the absence of an exchange rate instrument to engineer a recovery has necessitated the use of harsh fiscal consolidation (“internal devaluation” policies) to restore the economies’ competitiveness. Most of the countries have also sought assistance from the European Union (EU) and International Monetary Fund (IMF) to facilitate the deleveraging process that is required to bring their debts and deficits in order. In addition, the GIPSIs are faced with a rapidly aging population that is likely to add greater stress to their future fiscal burdens; this only underlines the pressures for these countries to undertake effective structural reforms to both restore their lost competitiveness as well as to get back to a fiscally sustainable growth path.1

Keywords: Public Debt; Global Financial Crisis; Current Account Deficit; Fiscal Consolidation; Housing Bubble (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-40697-2_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137406972

DOI: 10.1057/9781137406972_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().