European Crisis
Eurozone Debt Crisis: The Exit | Subject: Money and Banking | Instructor: Dr. Nguyễn Thị Hoàng Anh |
Name: Hoàng Trung Khánh
Student ID: 1001036095
Class: K49CLC2
Eurozone Debt Crisis:
The Exit
Content
I. The debate over salvation II. The narrow escape for Europe 1. Seeking for the cure 2. The half-finished dream of ‘Eurobond’ 3. The ‘Grexit’ plan 4. The return of Deutsche Mark III. The judgment time
I. The debate over salvation
The world has spent nearly 4 years discussing about the Eurozone Debt Crisis, figuring out its causes and measuring its impacts. Meanwhile, it has greatly magnified its intensity as well as its scale; Italia, Portugal, and Spain have recently become its next victims after Greece and Ireland. An apt and practical remedy is what we desperately need at this time of harshness.
In the scope of this essay, the three most commonly accepted solutions to the Crisis will be presented and discussed. Germany, the only European country having a growth in economy during the previous year, plays the central role in two of them. Greece, on the other hand, might also have the chance to resolve its shameful ‘legacy’. Despite the diversity of routes and methods, all these strategy have the same objectives: save the Eurozone from a possible break-up and bring prosperity back to the Continent. II. The narrow escape for Europe 1. Seeking for the cure
Since the collapse of Greek economy in 2009, two bailout loan packages for this country, which valued €110 billion and €130 billion, respectively, have been signed off by European leaders. In addition, a €85 billion loan to Ireland and another €78 billion to Portugal were made shortly afterward. While these loans’ expected effects are still miles away, its counter effect has been so obvious to Europe: the enormous burden borne by other members will pull even financially healthy countries back into crisis.
The toll has been taken on Italia,
Name: Hoàng Trung Khánh
Student ID: 1001036095
Class: K49CLC2
Eurozone Debt Crisis:
The Exit
Content
I. The debate over salvation II. The narrow escape for Europe 1. Seeking for the cure 2. The half-finished dream of ‘Eurobond’ 3. The ‘Grexit’ plan 4. The return of Deutsche Mark III. The judgment time
I. The debate over salvation
The world has spent nearly 4 years discussing about the Eurozone Debt Crisis, figuring out its causes and measuring its impacts. Meanwhile, it has greatly magnified its intensity as well as its scale; Italia, Portugal, and Spain have recently become its next victims after Greece and Ireland. An apt and practical remedy is what we desperately need at this time of harshness.
In the scope of this essay, the three most commonly accepted solutions to the Crisis will be presented and discussed. Germany, the only European country having a growth in economy during the previous year, plays the central role in two of them. Greece, on the other hand, might also have the chance to resolve its shameful ‘legacy’. Despite the diversity of routes and methods, all these strategy have the same objectives: save the Eurozone from a possible break-up and bring prosperity back to the Continent. II. The narrow escape for Europe 1. Seeking for the cure
Since the collapse of Greek economy in 2009, two bailout loan packages for this country, which valued €110 billion and €130 billion, respectively, have been signed off by European leaders. In addition, a €85 billion loan to Ireland and another €78 billion to Portugal were made shortly afterward. While these loans’ expected effects are still miles away, its counter effect has been so obvious to Europe: the enormous burden borne by other members will pull even financially healthy countries back into crisis.
The toll has been taken on Italia,
References: * Germany and its Eurobonds resistance by Nils Pratley, The Guardian, published May 23, 2012 * Euro exit and depreciation would bring economic gains by Roger Bootle, The Telegraph, published July 21, 2012 * To Save the Euro, Leave It by Kenneth C. Griffin and Anil K.Kashyap, the New York Times, published June 26, 2012 * Germany, not Greece, should Exit the Euro by Red Jahncke, Bloomberg News, published June 10, 2012