The world financial instability and the Euro zone crisis - Chapter 4 Jacques SAPIR CEMI-EHESS
Euro zone crisis
-
Upload
ramesh-narisetty -
Category
Documents
-
view
151 -
download
0
Transcript of Euro zone crisis
RAMESH NARISETTY
Presented by,
SSN ENGINEERING COLLEGE
EUROZONE DEBT CRISIS & IT’S IMPACT
IMPORTANCE OF CONCEPT
EUROPEAN UNION
1999: Austria,Belgium, Finland,France, Germany,Italy, Ireland,Luxembourg,Netherlands,Portugal,
Spain2001: Greece2007: Slovenia2008: Cyprus, Malta2009: Slovakia2011: Estonia
REASONS FOR CRISIS
GOVT
WHY THE DEBT INCREASE
High bond yields.
Lower tax returns.
Weakening export
competitiveness.
Large current account &
budget deficits.
300 billion Euros Grees debt
IMPACT ON EUROPEAN UNION
Reducing actual & potential
growth.
Labour market &
employment.
Budgetary positions.
Individuals.
IMPACT ON GLOBAL ECONOMYTrade & economy.
Foreign investments.
Reducing financial
wealth.
Reducing
competitiveness.
Fluctuations in
exchange rates.
IMPACT ON INDIA
Fluctuations in rupee
value.
Inflationary pressure.
Policy rates increased.
Slow down exports &
imports.
Other market areas.
MEASURES TO CONTROL CRISIS
ECB interventions.
European monetary fund.
European stability
mechanism.
World bank & IMF
bailouts.
“A JOYFUL RIDE”
CONCLUSION
ANY QUERIES