Who’s afraid of the Euro crisis?
What are the possible ripple effects of the euro crisis? There are a myriad of different opinions about what might happen and how far it might go.
This interactive graphic from the BBC website is a neat summary of just some of them - it starts with Greece itself, with comparisons to the debt crises in Spain, Portugal and Ireland then looks at the potential contagion effects of a collapse of confidence in Italy.
This may spread to banking meltdown in France, the UK and the ECB, with a Euro break-up rippling through the German and wider EU economies. As a result of the interdependence of the EU and its worldwide trading partners, global meltdown follows - which explains why Christine Lagarde of the IMF has been calling for more leniency towards Greece and other borrowers, and more action in Europe to boost growth.
Is there some way in which such negative multiplier effects can be avoided? Can macroeconomic policies be used somehow to protect domestic economies from the fallout? If they cannot, what next? This resource only presents one set of ideas, but might just help students to tease out some of the convoluted and complex issues which dog the EU and global economy at present.
blog comments powered by Disqus
Paul Ormerod: The Reinhardt and Rogoff miscalculation [25 Apr 2013]
Unit 2 Macro: UK and US Growth Compared [13 Apr 2013]
Paul Ormerod: Sovereign debt and Euro zone reality [11 Apr 2013]
Unit 2 Macro: Revision on Interest Rates [6 Apr 2013]
Unit 4 Macro: Unemployment in Germany - The Hartz Reforms [4 Apr 2013]
Unit 4 Macro: Interest Rates and Business Failure Risk [3 Apr 2013]
Unit 4 Macro: Unemployment in Europe (March 2013 Update) [2 Apr 2013]
Unit 4 Macro: Revise and Test - Aid and Micro Finance [31 Mar 2013]
Unit 2 Macro: Revise and Test - Macro Objectives [27 Mar 2013]
Unit 4 Macro: The UK Economy and the Euro [10 Feb 2013]
Unit 4 Macro: The UK Economy Outside of the Euro Area [4 Feb 2013]
Unit 2 Macro: Video Resources on the German Economy [3 Feb 2013]
Unit 4 Macro: Data Charts on the Euro Economy [21 Jan 2013]
Unit 4 Macro: Fair Trade and Micro Finance - Spurs to Development? [20 Jan 2013]
Unit 2 Macro: Zombie Households and the Slow Recovery [18 Jan 2013]
Unit 4 Macro: Overseas Aid and Economic Development - Debt Relief and Debt Cancellation [17 Jan 2013]
Unit 4 Macro: Overseas Aid and Economic Development - Basic Background [14 Jan 2013]
Teaching Macro: Charts on the US Economy [13 Jan 2013]
Unit 4 Macro: GDP and PPP Adjustments [8 Jan 2013]
Unit 4 Macro: The Failure of Austerity [5 Jan 2013]
Prospects for the UK Economy in 2013 [2 Jan 2013]
Unit 4 Macro: Britain’s Future in the European Union [27 Dec 2012]
Unit 4 Macro: The effect of immigration on wages and prices [14 Dec 2012]
Unit 4 Macro: Tax Changes to Boost Growth [12 Dec 2012]
Macro Policy: A Lost Decade for the West? [19 Nov 2012]
Unit 4 Macro: Looking to 2060: A Global Vision of Long-term Growth [11 Nov 2012]
Paul Ormerod: Our Friends in the North are trapped in a monetary union [8 Nov 2012]
Unit 2 Macro: The UK Economy - What Would Keynes Do? [7 Oct 2012]
Unit 4 Macro: Drivers of Economic Growth in India [29 Sep 2012]
A Very European Break Up - New Romantic Comedy [19 Sep 2012]
Unit 4 Macro: Development Indicators Top Trumps! [11 Sep 2012]
Improving your A2 Macro: Growth Slowdown in World Economy [6 Sep 2012]
Unit 3 Micro: Market Power in International Parcels [4 Sep 2012]
Unit 4 Macro: Can Spain Remain Competitive? [17 Jul 2012]
Unit 4 Macro: China’s Foreign Currency Reserves [16 Jul 2012]
Unit 4 Macro: Fiscal Policy in the UK - A Question of Credibility [12 Jul 2012]
Unit 2 Macro: EU Crisis Prompts Labour Migration [10 Jul 2012]
More unsettling news on Spain [15 Jun 2012]
End Depression Now! Paul Krugman at the LSE [30 May 2012]
Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Revision notes on unemployment [20 May 2012]
Unit 2 Macro: Bank Cuts UK growth Forecast for 2012 [17 May 2012]
Grexit - Andrew Balls on Greece and the Euro [16 May 2012]
Unit 2 Macro: Model answer for revision data question [9 May 2012]
Unit 2 Macro: 10 Key Revision Topics for EdExcel [8 May 2012]
Unit 2 Macro: Monetary Policy and Inflation Glossary [5 May 2012]
Unit 2 Macro: Trade and Balance of Payments Glossary [5 May 2012]
Unit 2 Macro: Fiscal Policy Glossary [5 May 2012]
Macro Revision - Key Statistics on the UK Economy [4 May 2012]
Robert Schiller - Finance and the Good Society [1 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 2 Macro: Britain back in Recession [29 Apr 2012]
Unit 4 Macro: The Euro Zone Crisis (Revision) [22 Apr 2012]
Unit 2 Macro: Globalisation and the Growth of Ports [11 Apr 2012]
Unit 2 Macro: Revision on Interest Rates and the Exchange Rate [3 Apr 2012]
Unit 4 Macro: Pain in Spain as Fiscal Austerity Bites [1 Apr 2012]
Unit 3 Micro: EU Imposes Further Price Cap on Mobile Phone Companies [29 Mar 2012]
Life in the Slow Lane - UK Growth in 2011 Lags the Euro Area [28 Mar 2012]
George Buckley at the Millfield Economics Society [28 Mar 2012]
Beyond the Bike - Monetary Policy in Africa [28 Mar 2012]
Unit 4 Macro: Evaluating 3 Years of Quantitative Easing [27 Mar 2012]
Unit 4 Macro: Video Resources on the Euro Crisis [10 Mar 2012]
Unit 4 Macro: Enlarging the EU [9 Mar 2012]
Unit 2 Macro: Policies to Drive Economic Recovery [9 Mar 2012]
Unit 2 Macro: News Videos on the German Economy [9 Mar 2012]
Unit 4 Macro: Sovereign Wealth Funds [4 Mar 2012]
Unit 2 Macro: Might Oil Prices Bring another Recession? [4 Mar 2012]
Pinterest: Board on Developments in the EU Economy [19 Feb 2012]
Unit 4 Macro: King on the UK Economy [15 Feb 2012]
Unit 2 Macro: China’s Trade Engine is Spluttering [10 Feb 2012]
Martin Wolf on Global Shocks [10 Feb 2012]
Trucks are the new way of measuring debt [1 Feb 2012]
Unit 2 Macro: Growth and Development - Some Indicators [31 Jan 2012]
Unit 4 Macro: Money, Debt and the New World Order [22 Jan 2012]
Unit 4 Macro: Russia Joins the WTO [22 Jan 2012]
Unit 4 Macro: France loses her AAA credit rating [15 Jan 2012]
Unit 4 Macro: Economics of Fiscal Deficit Reduction [12 Jan 2012]
Unit 4 Macro: UK Bond Yields Reach Record Lows [11 Jan 2012]
Unit 1 Micro: Low Cost Airlines Beat the Recession [1 Jan 2012]
Unit 4 Macro: Exchange Rate Economics - Where next for the US Dollar? [31 Dec 2011]
European Economics: Resources on the CAP [28 Dec 2011]
2011 in Review - The US Economy [27 Dec 2011]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
The Eurozone Crisis Explained (again!) [22 Dec 2011]
Unit 4 Macro: Celebrating (?) Ten Years of Euro Notes and Coins [2 Dec 2011]
Beyond the Bike - The Value of Money [19 Nov 2011]
Unit 2 Macro: Should the EU introduce a Tobin Tax? [15 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Eurozone crisis - a selection of resources [12 Nov 2011]
Can the “invisible hand” solve Africa’s poverty? [13 Oct 2011]
Skidelsky in Madrid [12 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
Greek debt decision tree [25 Sep 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
Unit 2 Macro: Greece on the Brink of Default [25 Sep 2011]
Unit 4 Macro: IMF Flags up Risks of Double Dip [20 Sep 2011]
Mixing with the Nobel Economists [4 Sep 2011]
hiphopnomics [31 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
AQA ECON4 Context [20 Jun 2011]
AS & A2 Economics Revision / Exam Coaching Workshops Coming Up:
Monday 11 March 2013 - Portsmouth (Vue, Gunwharf Quays)
Wednesday 13 March 2013 - Fulham (Vue, Fulham Broadway)
Thursday 14 March 2013 - Stratford City (Vue, Westfield)
Friday 15 March 2013 - Bristol (Vue, Cribbs Causeway)
Monday 18 March 2013 - Birmingham (Vue, Star City)
Tuesday 19 March 2013 - Manchester (Vue, Salford Quays)
Thursday 21 March 2013 - Newcastle (Odeon, Metro Centre)
Friday 22 March 2013 - Leeds (Vue, The Light)
Monday 22 April 2013 - Stratford City (Vue, Westfield)
Join over 10,000 Economics teachers who receive our regular Economics Teacher Resource Newsletter:
