Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/91742
Authors: 
Andini, Corrado
Cabral, Ricardo
Year of Publication: 
2012
Series/Report no.: 
IZA Policy Paper 37
Abstract: 
This note argues that the solutions to the euro-area crisis proposed by the EU governing institutions in cooperation with the IMF, based on further austerity and wage cuts, will worsen the crisis. They are unlikely to reduce both sovereign and external debt ratios of countries experiencing these problems. Quite in contrary, they are likely to further reduce the real GDP growth of these countries.
Subjects: 
euro crisis
austerity
wage cuts
JEL: 
E1
E4
E5
E6
Document Type: 
Working Paper

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