European Stock Asymmetries

Abstract

Not all countries of the European Union (EU) have the same levels of critical stock variables and thus exhibit stock asymmetries. Individual economies have different starting points for separate critical processes, such as economic growth. Hence, the issue of debt levels in relation to growth will have serious consequences on the intensification of the European crisis. The asymmetries that existed at the time were the immediate cause triggering the European crisis. Therefore, the different levels of member state national power will play a very important role in the future. The most distinctive cases of stocks include demographic and geostrategic (i.e., foreign policy determined primarily by geographical factors) elements of an economy. These are much broader concepts than the generally accepted notions of economic stock variables, but it is clear that they constitute determinative factors for growth in particular, and for European economic growth in general. The rate of stock change depends on current and future flows.