Euro Crisis

The European m wizardtary crisis explainedHow the unique currency lead to difficulties for many an(prenominal) a(prenominal) countries of the eurozone. And why each country will inescapably retrieve to a local currency for its domestic affairs. | Greece| by André Cabannes, PhD Stanford University, California, USAJuly and grand 2011, revised February 2012| | We explain how the unique currency lead to difficulties for many countries of the eurozone, focusing on the example of Greece. The fuss stems from a perplexity between capital for exchanges within a country and money for international trade. Greece is only the first in a series of countries where the same problem will arise: Italy, Spain, Portugal, Ireland, France. We do not advocate the withdrawal of these countries from the euro, but the use by each country of a system of two currencies, its local one and the euro. In recent decades China is the only country which apply the principle of separation of internal and external currencies and drew often benefit from it. Finally we explain why we believe that a new private international currency will appear.

The problem Greece| 2010| 2011 (forecast in June 2011)| 2012 (forecast in June 2011)|   | GDP (billion euros)| 236|  |  | | Growth of GDP (%)| -4,5| -3,5|  1,1 | | work out dearth (% of GDP) | -10,5| -9,5| -9,3| | Interest on public debt (% of GDP) | 5,6| 6,7| 7,4| | Budget deficit w/o interest on debt (% of GDP)| -4,9| -2,8| -1,8| | Public debt (% of GDP)| 143  | 158  | 166  | | reliable account deficit (% of GDP)| -10  | n.a. | n.a. | | Unemployment rate (% of working population)| 12,6| 15,2| 15,3| | |  | sources: European Commission, Eurostat, lodge of Greece   Adoption of a public currency in Europe In the 1990s the major European countries decided to have a common currency. They carried out their plan in two steps, first for parentage transactions in 1999, and then for all citizens, beginning January 1st, 2002. In... If you postulate to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper