Quotation Walther, Herbert. 2012. The Euro Crisis: A Keynesian Perspective. Conference:, National University Galway Ireland, Irland, 1. and 2. Nov. 2012. Invited Talk




The Euro crisis is analyzed as a systemic crisis, induced but not caused by the financial crisis. The institutional framework of the Euro-zone, in particluar the stability and growth pact, is unable to cope with the serious long-term implications of differing national trands in competitiveness. The latter are caused by the deep rooted institutional differences between Euro-zone member states. The classical deflationary adjustment mechanism, as it worked under conditions of the "gold standard" in the 19th century cannot expected to work under conditions of financial integration and, in particular, needs to much time to be sustainable under democratic political onditions. If some countries, who are unable to adjust via internal devaluation, are forced to pursue that path, political restistance will sooner or later enforse an exit from the Euro-zone.


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Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title The Euro Crisis: A Keynesian Perspective
Event Conference:
Year 2012
Date 1. and 2. Nov. 2012
Country Ireland
Location National University Galway Ireland
URL https://www.researchgate.net/publication/272183541_The_Euro_Crisis_A_Keynesian_Perspective
Invited Talk Y


Walther, Herbert (Details)
Department of Economics (Kartal) (Details)
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