Solving the Financial and Sovereign Debt Crisis in Europe
This paper examines the policies that have been proposed to solve the financial and sovereign debt crisis in Europe, against the backdrop of what the real underlying problems are: extreme differences in competitiveness; the absence of a growth strategy; sovereign, household and corporate debt at hig...
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| Format: | eBook |
| Language: | English |
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Paris
OECD Publishing
2012
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| Collection: | OECD Books and Papers - Collection details see MPG.ReNa |
| Summary: | This paper examines the policies that have been proposed to solve the financial and sovereign debt crisis in Europe, against the backdrop of what the real underlying problems are: extreme differences in competitiveness; the absence of a growth strategy; sovereign, household and corporate debt at high levels in the very countries that are least competitive; and banks that have become too large, driven by dangerous trends in 'capital markets banking'. The paper explains how counterparty risk spreads between banks and how the sovereign and banking crises are serving to exacerbate each other. Of all the policies proposed, the paper highlights those that are coherent and the magnitudes involved if the euro is not to fracture |
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| Physical Description: | 24 p. 21 x 28cm |