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The Eurocrisis

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Crisis and Sustainability

Abstract

This chapter briefly reconstructs the principal features of the crisis in the Eurozone started in 2010. First, the analysis focuses on how the Eurocrisis was triggered, propagated, and reinforced by structural, institutional, and policy factors. It then discusses the mainstream account of the Eurocrisis showing its shortcomings in the light of the optimal currency area theory. An alternative explanation is suggested focusing on the faulty design of the Euro and its management rules. The policy implications of the suggested explanation are then discussed emphasising the shortcomings of austerity policies. The investigation carried on in this chapter concludes that the current design of the Euro, its management rules, and the policy strategy pursued in the Eurozone are unsustainable.

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  1. London, UK

    Alessandro Vercelli

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Vercelli, A. (2017). The Eurocrisis. In: Crisis and Sustainability. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60069-1_8

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  • DOI: https://doi.org/10.1057/978-1-137-60069-1_8

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  • Print ISBN: 978-1-137-60068-4

  • Online ISBN: 978-1-137-60069-1

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