Engaged Learning Collection
The objective of the proposed research study is to examine the various reasons for the current Eurozone crisis. From its beginnings, the Euro has been criticized by many as a currency with potentially fatal design flaws. While these potential problems did not appear to have hurt the Euro and its currency area member countries during the first decade of its existence, most European policy makers have in the wake of the recent Eurozone crisis come to the conclusion that far reaching changes must occur to guarantee the survival of the Euro as the key European currency and to keep the PIIGS countries from existing the currency area. This focus of this research project is a detailed analysis of the history of the Euro, the causes of the current Eurozone crisis and the various proposals that have been advanced to fix the crisis. In addition to standard sources such as research articles, books, and online publications, the research is based on the analysis of interviews with European financial experts that Jean Paul conducted during his research trip in Brussels during the summer. This research project is important as it helps us understand why the Euro crisis exists in the first place and how it can be fixed. Given the contagion effect that is a hallmark of today’s financial markets, it is unlikely that world-wide recovery from the great recession of 2008-09 will become stronger and more sustainable unil the Euro crisis has been resolved.