GMS 400 Lecture Notes - Lecture 7: European Debt Crisis, Government Debt
11 Mar 2015
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Document Summary
In the eurozone, by 2012, government annual interest rates for borrowing, measured by their bond yields, were up to 7% for italy and spain, but only. 2% for germany (source: bloomberg: the eu has a rule that governments can not have a budget deficit over 3, by 2012, greece was above 13% What is the eurozone crisis: the eurozone is an economic and monetary union of 17 european union (eu) countries which have the euro as their common currency. In 2009, it was learned that greece had very high and growing deficits (the difference between their spending and tax receipts) In 2010, there was growing concern about the high debt in greece, spain, In return, the governments of these countries have been forced to impose strict budget reductions, which has caused rioting and strikes. Had to be bailed out by programs delivered jointly by the imf and the european.
