Where now for the euro area crisis? Interim assessment and a model for a stable euro area

Bericht

The euro area crisis drags on. Austerity measures in the crisis countries are deepening an already severe recession and this is having knock-on effects on the entire currency area. Policymakers have largely ignored the central cause of the crisis - the persistent failure by member states to keep their inflation rates in line with the ECB's target - and policy measures have instead been narrowed to a one-sided focus on fiscal deficit reduction. A fundamental change in economic policy is therefore needed. Fiscal consolidation policies must be backloaded and a debt redemption fund set up. A reformed fiscal pact needs to be introduced that is focused on avoiding current account imbalances. In the longer run this task should be performed by a European Monetary Fund.Length: 27 pages

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IMK Report ; No. 75e

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Horn, Gustav A. ; Lindner, Fabian ; Tober, Silke ; Watt, Andrew
• Event: Veröffentlichung
• (who): Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)
• (where): Düsseldorf
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/106096
• URN: urn:nbn:de:101:1-2013031310785
• Last update: 10.03.2025, 11:42 AM CET