Systematical cause
① Deeping disparities between Eurozone countries from single exchange rate
▲ EURO doesn’t represent economic situation of individual countries
▲ Greece used overvalued money compare to their economic level
▲ So, Greece monetary policy can’t be able to control their economic system
▲ Greece had a boom days due to liquidity extension not because
crisis spread because of The southwest Europe(PIIGS) budget deficit
The world three major credit-rating agency(MOODYS, S&P, FITCH) made downward revision in Portugal’s credit rating
2. Finance and real economy aspect
Major economic indicator
Stock market
High debt + budget deficit
distrust of world market
PSI20 index decrease sharply
But, i
crisis, the bankruptcy crisis of the Southern European countries. With euro’s crisis, countries scheduled to join the eurozone are struggling to choice.
So, We are understanding about the causes of the crisis and the correlation between the economy and the euro. Then we will predict the choice of countries scheduled to join the eurozone, through Compare the euro using countries with the unused
crisis solution, exchange rate management and financial policy coordination within the IMF have been designed to perpetuate the dominance of a few industrial countries, specifically the USA and the European Union member states. That is, the IMF lending decisions is a result of American policymakers and countries in which American banks are highly exposed and the governments closely allied with th
debt level is sustainable. For an accurate projection on debt sustainability, several indicators should be assessed simultaneously in a forward-looking way. It should be noted, also, that debt sustainability analysis has to be country-specific, with consideration of the country’s debt history, the level of sovereign ratings and the degree of development in the financial sector and capital marke