The Impact of the Eurozone Crisis on a Periphery Country: The Case of Italy

2015 ◽  
pp. 57-86
Author(s):  
Franco Praussello
Keyword(s):  
Eurozone Crisis ◽  
The Impact

scholarly journals The structure of business preferences and Eurozone crisis policies

2018 ◽  
Vol 20 (2) ◽  
pp. 165-207 ◽  
Author(s):  
José Fernández Albertos ◽  
Alexander Kuo
Keyword(s):  
Structural Characteristics ◽  
Economic Hardship ◽  
Left Wing ◽  
Firm Characteristics ◽  
Eurozone Crisis ◽  
Political Orientations ◽  
Fiscal Austerity ◽  
High Level ◽  
The Impact

AbstractWhat explains business views regarding policy preferences in the Eurozone crisis? Although recent literature examines the impact of the crisis on citizen views, few studies examine business preferences towards adjustment policies. We present unique data from a new representative survey of 500 high-level firm representatives from Spain to test theories about such preferences, in particular views about the euro, fiscal austerity, and wage devaluation, as well as plausible mechanisms for such preferences. We test three broad families of theories to explain such preferences, focusing on the role of structural firm characteristics, economic hardship, and political leanings of firm managers. We find that first, there is a strong conservative position regarding all of these policies. Second, we find that contra conventional approaches to explaining preferences, for the domestic policies (but not for euro views), the political leanings of firms matter much more than baseline structural characteristics. Third, we find that surprisingly economic hardship does not cause firms to demand more left-wing policies, as it might for voters; in fact, firms that have suffered are likely to be more skeptical of such measures. These findings indicate the need to better measure political orientations of firm respondents and suggest that this is a larger division among firms than previously recognized.

Impact of Eurozone crisis on domestic bank lending in India

2020 ◽  
Vol 12 (4) ◽  
pp. 577-591
Author(s):  
Vighneswara Swamy
Keyword(s):  
Emerging Economies ◽  
Debt Crisis ◽  
Bank Lending ◽  
Eurozone Crisis ◽  
Financial Shocks ◽  
Content Type ◽  
Crisis Period ◽  
Cross Border ◽  
International Banks ◽  
The Impact

Purpose The significant economic weight of the Eurozone in the globe caused the contagion of the Eurozone debt crisis on the emerging markets. The Eurozone debt crisis caused the sudden plummeting of the cross-border bank credit (BC) to India causing a significant impact on bank lending in India. Essentially, the purpose of this study is to find an answer to the question: Did the decline in cross-border cross-credit from Eurozone had an impact on domestic BC in India? Design/methodology/approach Using the data for the period from 2000 to 2013 sourced from Bank for International Settlements international banking statistics consolidated data sets, the novel specification of the study captures the impact of Eurozone cross-border credit on India by developing two regression frameworks that capture the pre-Euro debt crisis period scenario and post-Euro debt crisis period scenario. Findings The results offer a very interesting analogy of the behavior of BC and cross-border credit during the pre and post-Eurozone crisis scenarios of analysis. During the pre-Eurozone crisis period, cross-border credit displayed a significant negative relationship with BC indicating that cross-border credit to the Indian firms indirectly benefitted the banks by creating increased demand for domestic BC. The post-Eurozone crisis period witnessed a nexus between cross-border credit and BC during the pre-Eurozone crisis period, which gradually disappeared largely because of the onset of the Eurozone crisis. Originality/value This study is a first of its kind in investigating the impact of the Eurozone crisis on an emerging economy like India. This study supports the hypothesis of the existence of the transmission of financial shocks through the balance sheets of international banks. The findings conform to the policy concerns of most of the emerging economies that international banks transmit financial shocks from their home countries. The implication for India and other emerging economies is that international credit growth deserves careful monitoring.

scholarly journals Euro crisis

2010 ◽  
Vol 57 (3) ◽  
pp. 369-384 ◽  
Author(s):  
Miroslav Prokopijevic
Keyword(s):  
Public Finance ◽  
Financial Markets ◽  
Economic Recession ◽  
Euro Crisis ◽  
Economic Prosperity ◽  
Eurozone Crisis ◽  
Fiscal Discipline ◽  
The Impact

It is argued the current eurozone crisis is neither new nor surprising. Fiscal discipline in the eurozone was weak from its creation in 1999, but ongoing economic prosperity limited the damage. Economic recession deepened the impact of crisis on public finance and pushed some eurozone countries to the edge of bankruptcy. Options available now are costly and painful: foreign bailouts, cuts to expenditures, higher revenues and some combination of the three. They may be conducted both inside and outside the eurozone. If eurozone problems are not solved, financial markets may turn down the euro as a currency, possibly marking the beginning of Euro-disintegration.

Policy Effectiveness and Performance in the Eurozone Crisis

2020 ◽  
pp. 223-258
Author(s):  
Vivien A. Schmidt
Keyword(s):  
Growth Models ◽  
Eurozone Crisis ◽  
Policy Effectiveness ◽  
Private Debt ◽  
The Us ◽  
Wage Inflation ◽  
And Performance ◽  
Optimum Currency ◽  
The Impact ◽  
Output Legitimacy

Chapter 9 examines the output legitimacy of Eurozone crisis governance, based in its policy effectiveness and performance. The chapter begins by showing that the crisis was misframed as one of public debt rather than private debt and misdiagnosed as resulting from bad behavior rather than the structure of the euro. The narratives did not reflect the periphery’s pre-crisis low deficits and debt (except for Greece) or account for the impact of competitive wage deflation and current account surpluses in Germany, as well as for bank-spurred wage inflation in the periphery (especially by German and French banks). The chapter then argues that EU actors chose the wrong remedies—budgetary austerity and structural reform instead of growth through stimulus and investment—and failed to devise adequate solutions. This is evidenced by the EU’s lack of effectiveness in monetary policy and investment compared to the US and by the increasing divergence in performance between Northern and Southern Europe. To blame is the failure to complete the architecture of the euro with the necessary economic instruments, not the fact that the Eurozone would never be an Optimum Currency Area (OCA). At fault were equally the excessive socioeconomic costs of austerity, reflected in levels of unemployment, inequality, and poverty, and the perversity of EU-led structural reforms. These “one size fits all” socioeconomic policies failed to take account of differences in national varieties of capitalism and growth models, while taking a tremendous toll on countries under conditionality—not just Greece but also Portugal, Spain, Italy, and even Ireland.

From agenda setters to agenda takers? The determinants of party issue attention in times of crisis

2018 ◽  
Vol 24 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Enrico Borghetto ◽  
Federico Russo
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Political Representation ◽  
Economic Conditions ◽  
Southern Europe ◽  
Sovereign Debt Crisis ◽  
Eurozone Crisis ◽  
Democratic Representation ◽  
Issue Attention ◽  
The Impact

Question time represents one of the most relevant institutional arenas where parties compete to get their favourite issues on the parliamentary agenda. Parties select which issue to address by weighing up two commitments simultaneously: fulfilling the party mandate received by their voters at election time and responding to the current priorities of voters. This article assesses the extent to which the recent sovereign debt crisis impacted the way parties balance these two imperatives of democratic representation. Through the issue coding of around 10,000 parliamentary oral questions tabled in Italy, Portugal and Spain between 2003 and 2014, the analysis shows that the worsening of economic conditions intensified the impact of citizens’ priorities. However, there is no clear evidence of a decline in the importance of the party mandate for either the majority or opposition parties. These findings offer insights on the topic of party political representation in Southern Europe and whether it was affected by the Eurozone crisis.

IMPACT OF EUROZONE SOVEREIGN DEBT CRISIS ON CHINA AND INDIA

2017 ◽  
Vol 62 (05) ◽  
pp. 1137-1164 ◽  
Author(s):  
PAMI DUA ◽  
DIVYA TUTEJA
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Eurozone Crisis ◽  
China And India ◽  
Trade And Financial Linkages ◽  
The Global Financial Crisis ◽  
The Impact

This paper analyzes the impact of the Eurozone debt crisis on China and India. Using Markov-switching analysis, we discern regimes in economic growth as well as financial markets and study the impact of the global financial crisis and Eurozone crisis on the same. We identify vulnerability and robustness factors governing the degree of exposure and resilience to the crisis for both these economies. In view of strong trade and financial linkages, the Eurozone crisis may have marred prospects of recovery in the aftermath of the recent Great Recession in both China and India. China, however, is found to be more resilient to the crisis possibly due to stronger macroeconomic fundamentals.

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