8. Crisis In Europe

Question 1

Who are the periphery countries of the eurozone

Answer 1

Greece, Ireland, Portugal and Spain

Question 2

Who are the core counties of the eurozone

Answer 2

Germany, Finland, France, Netherlands, Austria

Question 3

What was there launch of the euro?

Answer 3

1999

Question 4

What did the future look like after the introduction of the euro

Answer 4

Bright and positive

Question 5

What is the eurozone as much as economic

Answer 5

Political

Question 6

Which country is said to have fudged entry criteria into the Euro zone

Answer 6

Greece

Question 7

What is bounded Europe?

Answer 7

A Europe comprised of concentric political affiliation a loyalty

Question 8

What can we see on the concentric rings model?

Answer 8

Different levels of eurpeaness from the core to the periphery

Question 9

Which countries have a more coordinated vision of how problems should be solved?

Answer 9

The original EEC6

Question 10

What do different levels of European integration entail?

Answer 10

Wealth, Teriary sector to primary sector, importance of land use, economic wealth is crucial

Question 11

What did the UK do when the euro was proposed?

Answer 11

Swelled upon the problems of the exchange rate mechanism, tried to bring together different currencies

Question 12

What did the leaders of Germany and France say about integration

Answer 12

It was their duty to continue integration

Question 13

What are the principle rules to join the single currency

Answer 13

Your national inflation rate to be broadly similar to interest rates, your budget deficit can’t exceed 3% of GNP, No debt load over 60% of their GNP

Question 14

How many euro bank notes were printed?

Answer 14

14.5 million bank notes total of 400billion

Question 15

How much copper was needed to make 75billion coins

Answer 15

250,000 tonnes of copper and nickel

Question 16

How many states use the euro

Answer 16

19

Question 17

Who is the guardian for monetary policy

Answer 17

European Central Bank

Question 18

Who sets interest rates?

Answer 18

Bank leaders to make sure inflation doesn’t exceed 2%

Question 19

What is the growth stability pact?

Answer 19

Aims to set debt targets for members

Question 20

Who is in charge of fiscal policy and national budgets

Answer 20

Member states themselves

Question 21

What is fiscal policy?

Answer 21

Taxation, setting budgets and deciding how much budgets will be spent

Question 22

What can the currency be described as?

Answer 22

1 size fits all currency

Question 23

Where did we see differing success in the euro zone?

Answer 23

Core and periphery

Question 24

What positives did we see in the new eurozone

Answer 24

Increasing employment, economic growth and development

Question 25

Which counties began to borrow?

Answer 25

Countries that had higher inflation, money seemed to be cheaper

Question 26

Where did we see increasing borrowing

Answer 26

Not just amount the population but business and governments

Question 27

What did increased borrowing lead to?

Answer 27

Rising debts

Question 28

What were loans spent on?

Answer 28

Large ticket items rather than eduction skills ect

Question 29

What was the borrowing between core and periphery?

Answer 29

Periphery borrows money from core states

Question 30

What interest do countries start to act in?

Answer 30

Ones that benefit the eurozone economy rather than their own

Question 31

Where do we see house price and construction booms

Answer 31

The core

Question 32

How many periphery countries ran debts from 1999-2007

Answer 32

All of them

Question 33

When do we see an optimal currency zone?

Answer 33

When countries converge economically and have flexable product and labour markets

Question 34

What are the desired attributes of an optimal currency zone?

Answer 34

High geographical mobility of labour, High Occupational mobility of labour, wage and price flexibility

Question 35

If a currency zone is optimal what happens during an economic shock

Answer 35

Similar response

Question 36

Is Europe’ a currency zone?

Answer 36

Not really, core groups are similar but divide with the periphery

Question 37

When was the financial crisis

Answer 37

2007-2008

Question 38

What caused the financial crisis

Answer 38

Started in the US, mortgages of 100% were beginning to be offered nationally, damaging when lent to people that couldn’t pay for it

Question 39

Give an example of an investment bank that collapsed?

Answer 39

Lehman brothers

Question 40

Who began to value and question the value of what they actually had?

Answer 40

Shareholders and stockholders

Question 41

Which countries in Europe took the larger debt

Answer 41

Periphery

Question 42

What were national banks traditionally known as?

Answer 42

Lenders of last resort

Question 43

Why couldn’t the ECB act as a lender of land resort

Answer 43

Maastricht treaty 1992

Question 44

How big were national banks relative to their economies?

Answer 44

Large

Question 45

What was the euro introduced for?

Answer 45

To increase competitiveness

Question 46

Who picks up the tab for the financial crisis?

Answer 46

National banks

Question 47

How much loan does Greece get in 2010?

Answer 47

110 billion, Eu worries government would leave Eu

Question 48

What are the national consequences of the euro on Ireland

Answer 48

Benefitted a lot, Ireland described as a Celtic tiger

Question 49

When did Ireland have a banking crisis of its own?

Answer 49

2010-2013, harsh measures were taken to respond to unemployment of 14%

Question 50

What helped to caused the financial crisis in Ireland

Answer 50

Reckless lending by property developers

Question 51

What aid package does Ireland adopt?

Answer 51

85bn gradual recovery

Question 52

What can be said about he way the Eu felt with Ireland

Answer 52

Fast and swift led to better economy, good finincial stewardship

Question 53

Why was Greece destined to fail in the eurozone

Answer 53

Erroneous way it entered into the Eurozone, Greek economy layered with structural flaws

Question 54

How much money did Greece borrow in total?

Answer 54

€350billion

Question 55

What was Greece’s fiscal discipline like?

Answer 55

Weak, make red by mass consumption and construction booms

Question 56

What was the consequence of financial crisis in Greece?

Answer 56

Wages rise, competitiveness decreases, unstable pension and health system

Question 57

Who put together the aid package for Greece?

Answer 57

Eu and IMF

Question 58

What was unemployment in Greece?

Answer 58

Up to 22%

Question 59

How much were wages cut by in Greece

Answer 59

40%

Question 60

How much money did France loose thanks to Greece

Answer 60

55 | Billion

Question 61

How much will Greece’s debt load be by 2020?

Answer 61

120% of its GNP

Question 62

When was Greece’s co elition government elected?

Answer 62

2015

Question 63

What are the new facist group in Greece called

Answer 63

New Dawn

Question 64

Why are the 2 arguments to what the ECB should be?

Answer 64

France thinks it should have more powers but Germany thinks it should be an honest stock broker

Question 65

What other periphery countries were effected by the financial crisis

Answer 65

Italy Portugal and Spain

Question 66

What was the eurozone growth in 2016

Answer 66

1.5% sluggish growth

Question 67

What is the view of financial markets now

Answer 67

More relevant to lend to eurozone countries

Question 68

When did Greece see drastic cuts in public spending?

Answer 68

2010-2014

Question 69

What was created to be used in the face of a crisis?

Answer 69

European stability facility , bailout of around 500 billlion, made available to countries in the eurozone that need bailing out

Question 70

If a country needs aid who does it apply to?

Answer 70

The European Commission

Question 71

When was quantative easing introduced

Answer 71

2015, used to correct money supply, declined money in circulation, 1 trilllion euros in circulation

Question 72

What is the idea behind Europe 2020 growth

Answer 72

Increased dynamics integrity, innovation, builds on the Lisbon treaty, diversification and competitiveness, economic reform programme

Question 73

How can counties confront the crisis on a national scale?

Answer 73

Periphery obliged to adopt drastic austerity measures and accelerate reforms, stimulus vs austerity debate

Question 74

What is the eurosceptic view of the eurozone

Answer 74

It will break up, doomed from the start, European counties too different, public debt levels are not sustainable, austerity measures are too servere, leaving the euro only option

Question 75

Who said that Europe will not survive the first major economic recession

Answer 75

Milton Friedman, chicago school of economics, put the wind in the sails of neoliberalism