The aftermath of the subprime crisis is the present sovereign debt crisis the developed countries are facing, not only weak euro-area countries but also the core countries of the World-economy. The liberalization of financial markets over the past decades coupled with strong confidence in monetary principles and fiscal orthodoxy is responsible of the present state of our economies harming present and future generations’ welfare. Debt crises – banking, external or sovereign, domestic crises alike - are common phenomenon in modern history. Is the present debt crisis different?
The first objective of the course is to present the key concepts and theories to analyze sovereign debt and default, but also currency and banking crises, with a special focus on the euro-area crisis. The second one is to develop a comparative perspective on this topic, historical and geographical, so as to discuss questions as the following: does the present Greek experience have something in common with Latin America’s debt crises of the early 1980’s? The third objective is to explore ways to cope with this crisis and discuss possible sustainable solutions, especially for the euro-area.
- Teacher: Patrick Mardellat