Further austerity and wage cuts will worsen the euro crisis

Corrado Andini; Ricardo Cabral

This note argues that the solutions to the euro-area crisis proposed by the EU governing institutions in cooperation with the IMF, based on further austerity and wage cuts, will worsen the crisis. They are unlikely to reduce both sovereign and external debt ratios of countries experiencing these problems. Quite in contrary, they are likely to further reduce the real GDP growth of these countries.

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Year of publication:	2012
Authors:	Andini, Corrado ; Cabral, Ricardo
Publisher:	Bonn : IZA
Subject:	euro crisis \| austerity \| wage cuts \| Haushaltskonsolidierung \| Fiscal consolidation \| Lohnpolitik \| Wage policy \| Wirkungsanalyse \| Impact assessment \| Staatsbankrott \| Sovereign default \| Wirtschaftskrise \| Economic crisis \| Eurozone \| Euro area \| Schuldenkrise \| Debt crisis

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Extent:	Online-Ressource (13 S.) graph. Darst.
Series:	IZA policy papers. - Bonn : [Verlag nicht ermittelbar], ZDB-ID 2503755-9. - Vol. 37
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/91742 [Handle]
Classification:	E1 - General Aggregative Models ; E4 - Money and Interest Rates ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009500683