On the Causes of the Eurozone Crisis
On the Causes of the Eurozone Crisis

Summary/Abstract: The paper examines the causes of the Eurozone crisis – they are divided into two categories: proximate and fundamental causes. Regarding the former, it seemsthat the current account balance should be seen as a crucial determinant of theGDP dynamics of the Eurozone members during 2008–2012. As far as the fundamental causes are concerned, the financial market structure and institutional qualitymeasures are of the highest explanatory power. Econometric results indicatethat measures taken to tackle the crisis (austerity and internal devaluation) may be ineffective in restoring growth and stability.

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