POLS 3435 Lecture Notes - Lecture 13: European Debt Crisis, Global Financial System, Existential Crisis

• School: Northeastern University
• Department: Political Science
• Course: POLS 3435
• Professor: Mai'a Cross

Document Summary

Crafting of emu has been a gradual process. Eu member states launched monetary union before completing economic union. Euro performed well from 1999 to 2009- growth comparable to the us. Euro helped many eu member states to have gdp growth. Eu is brought to the brink of its very existence. Fundamental flaws of the global financial system. Since the 1980s deregulation and market fundamentalism. Banks and investors took on more risk. The euro was a bad idea from the beginning. Core and periphery member states were too imbalanced when they adopted the euro. Structure of the monetary union had built-in design problems. Banking systems remained national while the monetary union was supranational. Half of the euro countries exceeded the debt rules with no consequences cause. Greece is to blame there were no teeth. Issues that undermined the other countries" economies were distinctive in each case. Societal reaction to the crisis (i. e. media, elites, and public reaction)