Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-vdxz6 Total loading time: 0 Render date: 2024-12-04T13:39:12.107Z Has data issue: false hasContentIssue false

5 - The Great Recession

How It Developed in Europe

from Part II - Institutions and Policies in Action

Published online by Cambridge University Press:  19 August 2020

Nicola Acocella
Affiliation:
Sapienza Università di Roma
Get access

Summary

Chapter 5 investigates the consequences of the Great Recession on indicators of macroeconomic and microeconomic efficiency and equity. In Europe the financial crisis appeared initially under forms similar to those characterizing the United States, but soon assumed a very different form, due to the state intervention to save ailing banks, and the EMU peculiar institutions. More recently, the crisis has again changed its nature, as sovereign debt has been absorbed by banks, thus causing a problem for them and, in turn, again for the public finances that had to face bank failures. An important role was played by the specific financial imbalances that appeared in the EMU as a consequence of the formation of a currency area. Pre-existing imbalances became more intense when Germany decided to cope with the difficulties of a mature economy and unification with its Eastern Lander by adopting an export-led growth model supported by real devaluation. Then, European financial integration allowed for persistent net lending from core countries to peripheral countries, which compensated for the current account of the latter towards not only the former but also countries external to the EA.

Type
Chapter
Information
The European Monetary Union
Europe at the Crossroads
, pp. 142 - 184
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

  • The Great Recession
  • Nicola Acocella, Sapienza Università di Roma
  • Book: The European Monetary Union
  • Online publication: 19 August 2020
  • Chapter DOI: https://doi.org/10.1017/9781108892858.006
Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • The Great Recession
  • Nicola Acocella, Sapienza Università di Roma
  • Book: The European Monetary Union
  • Online publication: 19 August 2020
  • Chapter DOI: https://doi.org/10.1017/9781108892858.006
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • The Great Recession
  • Nicola Acocella, Sapienza Università di Roma
  • Book: The European Monetary Union
  • Online publication: 19 August 2020
  • Chapter DOI: https://doi.org/10.1017/9781108892858.006
Available formats
×