On the Causes of the Eurozone Crisis

Tomasz Serwach

doi:10.18778/2082-4440.16.03

Authors

Tomasz Serwach Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny, Katedra Wymiany Międzynarodowej

DOI:

https://doi.org/10.18778/2082-4440.16.03

Keywords:

Eurozone, financial crisis, balance of payments

Abstract

The paper examines the causes of the Eurozone crisis – they are divided into two categories: proximate and fundamental causes. Regarding the former, it seems that the current account balance should be seen as a crucial determinant of the GDP dynamics of the Eurozone members during 2008–2012. As far as the fundamental causes are concerned, the financial market structure and institutional quality measures are of the highest explanatory power. Econometric results indicate that measures taken to tackle the crisis (austerity and internal devaluation) may be ineffective in restoring growth and stability.

Author Biography

Tomasz Serwach, Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny, Katedra Wymiany Międzynarodowej

Doktor nauk ekonomicznych

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