2021
DOI: 10.5937/aneksub2145079b
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Effectiveness of bail-out mechanisms in the Eurozone: Global vs. pandemic crisis

Abstract: This paper analyses the effectiveness of bail-out mechanisms after the global crisis in comparison to Covid-19 pandemic crisis in the selected Eurozone economies. It seems that in the circumstances of global instability, laissez-faire rules in economy are not enough, meaning that government interventions are desirable and unavoidable. In the Eurozone, the implementation of bail-out programs is related with the problem of a new "impossible trinity" and no-bail out clause. However, the adopted clause on non-use … Show more

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Cited by 3 publications
(3 citation statements)
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“…External shocks like GFC and now pandemic of corona virus further complicate the possibility to achieve goals of sustainable economic growth, low inflation and unemployment rate, limited public debt and balanced current account. In line with this, Beljić & Glavaški (2021) analyzed effectiveness of government measures in cases of GFC compared to pandemic of corona virus with conclusion that fiscal and monetary support measures were stronger and more prompt in the current pandemic crisis. Also, emerging markets performed considerably worse than developed markets during this pandemic compared to the GFC with unfavorable higher costs of equity for investments in emerging markets (Kostin, Runge & Adams, 2021).…”
Section: Introductionmentioning
confidence: 87%
“…External shocks like GFC and now pandemic of corona virus further complicate the possibility to achieve goals of sustainable economic growth, low inflation and unemployment rate, limited public debt and balanced current account. In line with this, Beljić & Glavaški (2021) analyzed effectiveness of government measures in cases of GFC compared to pandemic of corona virus with conclusion that fiscal and monetary support measures were stronger and more prompt in the current pandemic crisis. Also, emerging markets performed considerably worse than developed markets during this pandemic compared to the GFC with unfavorable higher costs of equity for investments in emerging markets (Kostin, Runge & Adams, 2021).…”
Section: Introductionmentioning
confidence: 87%
“…Considering the transmission of the global crisis to national economies, the identification of causes or negative external shocks is of key interest to economic policymakers. The depth of crisis consequences can be mitigated by prompt, countercyclically directed, and coordinated economic policy reactions (Beljić and Glavaški 2021).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Common factors are related to fiscal policy framework in the European Union (EU) and Eurozone 1 based on Maastricht Treaty (1992), Stability andGrowth Pact (1997), Fiscal Compact (2012), and independent fiscal institutions established to monitor fiscal rules implementation, such as European Fiscal Board (established in 2015). The success of common fiscal rules in the EMU and common monetary policy were checked during the global financial crisis, and results showed divergence within Eurozone economies, and possibilities for the Eurozone periphery economies to either leave EMU or to negotiate bail-out programs (Beljić & Glavaški, 2020). The idea of this paper is to analyze fulfillment of criteria for fiscal sustainability achievements in Eurozone economies after the global crisis, taking into a consideration the direction of causality between public expenditure and public revenues (nexus).…”
Section: Introductionmentioning
confidence: 99%