Menu Expand

The Euro Area Crisis Five Years After the Original Sin

Cite JOURNAL ARTICLE

Style

Orphanides, A. The Euro Area Crisis Five Years After the Original Sin. Credit and Capital Markets – Kredit und Kapital, 48(4), 535-565. https://doi.org/10.3790/ccm.48.4.535
Orphanides, Athanasios "The Euro Area Crisis Five Years After the Original Sin" Credit and Capital Markets – Kredit und Kapital 48.4, 2015, 535-565. https://doi.org/10.3790/ccm.48.4.535
Orphanides, Athanasios (2015): The Euro Area Crisis Five Years After the Original Sin, in: Credit and Capital Markets – Kredit und Kapital, vol. 48, iss. 4, 535-565, [online] https://doi.org/10.3790/ccm.48.4.535

Format

The Euro Area Crisis Five Years After the Original Sin

Orphanides, Athanasios

Credit and Capital Markets – Kredit und Kapital, Vol. 48 (2015), Iss. 4 : pp. 535–565

4 Citations (CrossRef)

Additional Information

Article Details

Author Details

MIT Sloan School of Management, E62-481, 100 Main Street, Cambridge, MA 02142. Tel.: +1-617-324-4051.

Cited By

  1. The Non-Standard Monetary Policy Measures of the ECB: Motivations, Effectiveness and Risks

    Neri, Stefano | Siviero, Stefano

    Credit and Capital Markets – Kredit und Kapital, Vol. 51 (2018), Iss. 4 P.513

    https://doi.org/10.3790/ccm.51.4.513 [Citations: 11]
  2. Kryzys strefy euro i nowe wyzwania dla demokracji i praw podstawowych w Unii Europejskiej

    Galent, Marcin

    Rocznik Administracji Publicznej, Vol. 8 (2022), Iss. P.307

    https://doi.org/10.4467/24497800RAP.22.017.16793 [Citations: 0]
  3. Did the Absence of a Central Bank Backstop in the Sovereign Bond Markets Exacerbate Spillovers During the Euro-Area Crisis?

    Tavlas, George | Gibson, Heather D. | Hall, Stephen G. | Gefang, Deborah | Petroulas, Pavlos

    SSRN Electronic Journal , Vol. (2020), Iss.

    https://doi.org/10.2139/ssrn.4197910 [Citations: 0]
  4. The financial education of the Eurozone

    Smart, Christopher

    Journal of European Integration, Vol. 40 (2018), Iss. 2 P.123

    https://doi.org/10.1080/07036337.2017.1404051 [Citations: 1]

Abstract

Why did Europe fail to manage the euro area crisis and what lessons can be drawn from this failure for Europe"s future? Studying the EU / IMF program that was imposed on Greece in May 2010 – the original sin of the crisis – highlights both the nature of the problem and the difficulty in resolving it. The mismanagement can be traced to the flawed political structure of the euro area that permitted governments of some member states to exploit problems in other member states that share the common currency. Undue influence of key euro area governments compromised the IMF"s role to the detriment of other member states and the euro area as a whole. Rather than help Greece, the May 2010 program was designed to protect specific political and financial interests in other member states. The ease with which the euro was exploited to shift losses from one member state to another and the absence of a corrective mechanism render the current framework unsustainable. In its current form, the euro poses a threat to the European project.

Table of Contents