Not really a “3 things I learned in Global Econ this semester,” but pretty close. This student (with some suggested fixes from myself) wrote on one of the more recent things we learned – the causes of the Euro crisis – arranged around 3 main explanations. And, they found some great graphs to illustrate it!
By 2007-08, the world had been hit by the global financial crisis, and the Eurozone was no exception. Ireland was the first country to fall, with their crisis beginning in 2007, and is now facing some of the most stringent austerity measures to be implemented. Then, after a lot of speculation and uncertainty, Greece came next. These countries, along with the other PIIGS (Portugal, Ireland, Italy, Greece, and Spain) have not been able to bounce back from the crisis as their other EU counterparts Germany and France have.
Why not? Some reasons could be attributed to behaviors prior to the crisis. These factors hint at some continued weakness of the Southern European area, and should make us question whether the signs of a recent Eurozone recovery may only be a temporary thaw.
So, let’s take a look at what caused this crisis. Continue Reading