10 Questions about the Eurozone Crisis and whether it can be solved

The Eurozone crisis entered a new and dangerous phase in August 2011. The three countries already in the bailout regime organized by the troika of the European Commission, the ECB and the IMF were small. But in August, the slow-down in the world economy triggered concern about the ability of the much larger economies Spain and Italy to remain solvent. This extension of the crisis to large countries was reflected in rising interest rate spreads on government bonds (above the rate on German long-term bonds) and falling prices for bank shares, revealing the interconnection of the fiscal and banking problems of the Eurozone. There is no simple solution to the crisis. Although the crisis only emerged in early 2010, its roots go back to the formation of the euro. One way of trying to make sense of the current difficulties is to address the following 10 questions:.''

by Wendy CarlinProfessor of Economics

UCL Department of EconomicsSeptember 2011
09/2011: The Eurozone Crisis