THE EUROPEAN CENTRAL BANK AND THE EUROZONE CRISIS MANAGEMENT
Journal Title: Challenges of the Knowledge Society - Year 2013, Vol 3, Issue 0
Abstract
The Euro is the single currency shared by 17 of the European Union's Member States, which together make up the Euro area. Since its introduction, in January 2002, it became the second most traded currency in the world after the United States dollar. With the launch of the Euro, the monetary policy became the responsibility of the independent European Central Bank, which was created for that purpose, and of the national central banks of the Member States, having adopted the Euro. However, the accumulation of massive and unsustainable deficits and public debt levels in a number of peripheral economies threatened the Eurozone's viability by the end of its first decade, triggering a Eurozone sovereign debt crisis. The institutional mechanisms surrounding the Euro have also been an integral part of the crisis. On this line, the European Monetary Union is supported on one side by treaties and multilateral agreements including the Maastricht Treaty, the Stability and Growth Pact and the Lisbon Strategy and, on the other side, by the European Central Bank. The combination of these institutions has produced a mix of monetary, fiscal and labour market policies with powerful social implications. And, what started as a debt crisis in Greece in late 2009 has evolved into a broader economic and political crisis in the Eurozone and European Union. In this framework, the purpose of my paper is to analyze the roots of the Eurozone crisis, as the biggest challenge since the Euro adoption and the European Central Bank’s response to it. Therefore the objectives are: identification of the reasons that stand behind the crisis, then observing how the crisis has affected the functioning of the European Central Bank and the Euro, and how it was forced to respond and, finally, focusing on the future and the challenges that lie ahead.
Authors and Affiliations
MONICA ŞAGUNA
Keywords
Related Articles
- EP ID EP157586
- DOI -
- Views 120
- Downloads 0
DAN DIACONESCU: THE POLITICS OF BREAD AND CIRCUSES
Founder and owner of two television stations, Dan Diaconescu found the opportunity to rise the electoral support for his anti-system party through media channels in the circumstances of a tumultuous political year and a...
HISTORICAL COST AND FAIR VALUE WITHIN THE CONTEXT OF FINANCIAL CRISIS
Financial crisis determined the fast extension of global financial bankruptcy upon the world, representing at the same time the first crisis of the accounting term of "fair value", under the shade of which subsists a num...
HUNGER STRIKES AND FORCE-FEEDING IN PRISONS
This study will try to give an overview and assess the international and European standards regarding the management of hunger strikes. We will analyse the international and European standards regarding the force-feeding...
ENFORCING ARBITRAL AWARDS IN ROMANIA - ALWAYS A CHALLENGE
Securing a favourable award from a foreign or domestic arbitral court proves to be in many cases only half the battle. As a rule, Romanian law and courts acknowledge the final, binding and enforceable nature of arbitrati...
COMMISSION CONTRACT UNDER THE NEW ROMANIAN CIVIL CODE
The adoption of the new Civil Code and its entry into force on October 1st 2011 has involved an extensive reform of the private law. The new Code has aimed primarily to achieve a unification of the private law, the large...