Jump to ContentJump to Main Navigation
The Euro Crisis and Its Aftermath$
Users without a subscription are not able to see the full content.

Jean Pisani-Ferry

Print publication date: 2014

Print ISBN-13: 9780199993338

Published to Oxford Scholarship Online: May 2014

DOI: 10.1093/acprof:oso/9780199993338.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 12 December 2019

The Day the Euro Ceased Being Boring

The Day the Euro Ceased Being Boring

Chapter:
(p.3) Chapter 1 The Day the Euro Ceased Being Boring
Source:
The Euro Crisis and Its Aftermath
Author(s):

Jean Pisani-Ferry

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199993338.003.0001

During the first 10 years of its existence, from 1999 to 2008, the euro was boring. The transition from old national currencies had been smooth and trouble-free. Inflation was nonexistent and interest rates were low. Things began to change in 2009, when Greece’s fiscal woes came to the fore. The euro suddenly stopped being boring. To tell the truth, by the mid-2000s, it had already become evident that after the adoption of the euro, economies had begun to diverge rather than converge. While Germany was striving to cut costs and reinvent its industrial model, while such and Ireland and Spain were enjoying a period of euphoria and unprecedented prosperity. In these countries, the euro had triggered a decline in interest rates, reducing the burden of debt and opening the credit floodgates, while inflation consistently exceeded the euro-area average. There was not much the European Central Bank, the institution created to manage the new currency, could do, since its mandate was to manage the euro area as a whole, not the situations in individual countries.

Keywords:   euro, Greece, Spain, unemployment, Germany, interest rates, public debt, inflation, European Central Bank, euro crisis, competitiveness

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .