This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 26 No. 3 (Summer 2012)
JEP Volume. 26, Issue 3 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
Online Appendix (84.93 KB)
View Comments on This Article (1) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
The European Sovereign Debt Crisis
Article Citation
Lane, Philip R. 2012. "The European Sovereign Debt Crisis."
Journal of Economic Perspectives,
26(3): 49-68.
DOI: 10.1257/jep.26.3.49
DOI: 10.1257/jep.26.3.49
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.
Article Full-Text Access
Full-text Article (Complimentary)
Additional Materials
Online Appendix (84.93 KB)
Authors
Lane, Philip R. (Trinity College Dublin)
JEL Classifications
E62: Fiscal Policy
F34: International Lending and Debt Problems
F36: Financial Aspects of Economic Integration
H63: National Debt; Debt Management; Sovereign Debt
F34: International Lending and Debt Problems
F36: Financial Aspects of Economic Integration
H63: National Debt; Debt Management; Sovereign Debt
Comments
View Comments on This Article (1) | Login to post a comment
Date: 2013-01-02 09:54:57
The Philip R. Lane´s article "The European Sovereign Crisis lists many of principal aspects of origin, reasons, aspects, development, consequences, and approaches how to solve the crisis. However, I think several others should be added. Firstly, it was a crisis of ethic – in politics, banking practice, and business, in general which led to an underrating of risks connected with non-professional and sometimes corruptive interrelations between politicians, bankers and businessmen. Many of examples of this crisis could be found all over the Europe and other regions, specifically those mentioned in the article on page 55 in the part “The Financial Crisis and the Sovereign Debt Crisis”. Secondly, crisis in management, especially in its leadership, controlling and revision functions enabled such failures and collapses like at Lehman Brothers. Also the quality of education and professional practice of top managers in banks and business organizations before they are approved to their positions is principally different from a curriculum of most of the top-managers in state, regional, local and other public governments and institutions and it may weaken their position in face with these ”keen professional managers”. Thirdly, the European and also World global financial and economic crisis has its roots in erroneous understanding of the role of money in modern World, in my mind. Money should serve not to rule - even nowadays. Money is a tool, only. To develop economy and well-being in general we need not just money, but also other “tools”, like know how, educated, skilled & experienced staff and managers, scientific knowledge, techniques, technology, information, transport and communication means, and many others. Their lack or underdevelopment can result in backwardness, regional and local disparities, but money in hands of speculators represents a destructive danger for economy, business, social and political development all over the world.
10.1257/jep.26.3.49