The European Sovereign Debt Crisis

Philip Lane

Journal of Economic Perspectives, 2012, vol. 26, issue 3, 49-68

Abstract: The origin and propagation of the European sovereign debt crisis can be attributed to the flawed original design of the euro. In particular, there was an incomplete understanding of the fragility of a monetary union under crisis conditions, especially in the absence of banking union and other European-level buffer mechanisms. Moreover, the inherent messiness involved in proposing and implementing incremental multicountry crisis management responses on the fly has been an important destabilizing factor throughout the crisis. After diagnosing the situation, we consider reforms that might improve the resilience of the euro area to future fiscal shocks.

JEL-codes: E62 F34 F36 H63 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/jep.26.3.49
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (459)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/jep.26.3.49 (application/pdf)
http://www.aeaweb.org/jep/app/2603_Lane_app.pdf (application/pdf)

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:aea:jecper:v:26:y:2012:i:3:p:49-68

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

Journal of Economic Perspectives is currently edited by Enrico Moretti

More articles in Journal of Economic Perspectives from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().