Unformatted text preview: nity
government to implement the necessary austerity
measures required to receive the €8 billion bailout
funds. The drama leading to this action buffeted
the markets. Illustrating how fluid the situation is,
Italy, the world’s third-largest sovereign borrower,
appears to be the next domino in the chain, with
Prime Minister Berlusconi resigning following the
passage of austerity legislation. What’s next, and
can the European leadership successfully get in
front of the problem and limit the contagion?
The apparent flaws to the creation of the euro are
coming under scrutiny as economic growth slows and the specter of an anomic collapse of confidence in the eurozone raises its head. Unity without a common fiscal policy, without a common
constitution, and without enforcement mechanisms is possible in times of growth but as growth
slows, weaknesses that were once overlooked can
no longer be ignored.
In 2008, it was obvious that a global devaluation
of currencies would be a tool that the industrialized countries...
View Full Document
This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery