Austerity Policies in the Eurozone: What Can We Learn After the Crisis?
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In the Eurozone, the financial crisis affected countries in varying ways. Austerity policies caused inequality. Some periphery countries were more vulnerable, experiencing alarming output decreases and unemployment increases, particularly for youth unemployment.
These problems compromise the inter-generational aspects of sustainable growth and development and are relevant for the member countries of a monetary union facing a sovereign debt crisis. Even in integrated economies, such as the European Union (EU) and the Eurozone, the policy measures adopted post-recovery are especially relevant. Contributing to recovery from the recent crisis, based on the Juncker Plan, the European Fund for Strategic Investments (EFSI) was designed to promote jobs and sustainable development (European Commission, Press release, 30 May 2017, https://europa.eu/rapid/press-release_IP-17-1383_en.htm).
As addressed by Blanchard (NBER Reporter, Summer2004), the evolution of the average European unemployment...
Carmen Díaz-Roldán acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (Project ECO2016-78422-R). Paper presented at the 87th International Atlantic Economic Conference, Athens, Greece, March 2019