The European Sovereign Debt Crisis: An Overview of the PIIGS
Independent thesis Advanced level (degree of Master (One Year)), 15 credits / 22,5 HE creditsStudent thesis
The purpose of this thesis is to examine the effects of macroeconomic indicators on the government debt of Portugal, Italy, Ireland, Greece and Spain (PIIGS), based on the data from 1990 to 2010 and employed a panel data model. The research finds that the macroeconomc conditions of the PIIGS are all deteriorated to some extent, and these deteriorations lead the accumulation of government debt. The expansionary fiscal policy is an important factor that accounts for the high debt ratio of the PIIGS. On the other hand, the discrepancy between the unified monetary policy and the separated fiscal policy obstructs the adjustment mechanism by the individual government, and leads the exchange rate and interest rate instruments not efficient.
Place, publisher, year, edition, pages
sovereign debt crisis, government debt, macroeconomic indicators, fiscal policy, monetary policy
IdentifiersURN: urn:nbn:se:hj:diva-18466OAI: oai:DiVA.org:hj-18466DiVA: diva2:533894
UppsokSocial and Behavioural Science, Law
Mellander, Charlotta, Associate ProfessorÖner, Özge, Doctoral CandidateNilsson, Pia, Doctoral Candidate