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What Were The Main Causes of The Eurozone Debt Crisis of 2010/2011, and What Have Been The Significant Policy Responses To That Crisis? - Essay Example

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What Were The Main Causes of The Eurozone Debt Crisis of 2010/2011, and What Have Been The Significant Policy Responses To That Crisis?

It has been apparent from the working paper of International Monetary Fund (IMF) that since early 2010, the Eurozone had faced significant effects from the recent debt crisis. The countries belonging to Eurozone that have subsequently faced the major debt crisis included Greece, Portugal as well as Ireland. Among these three Eurozone countries, particularly Greece has been viewed to be the main sufferer of the resulting debt crisis that took place in the Eurozone. It has been reported that Greece possessed the highest level of public debt along with significant budget deficits in the year 2010. In this connection, the sufferer countries belonging to Eurozone i.e. Portugal, Greece and Ireland eventually turned to other European nations as well as the International Monetary Fund (IMF) for financial assistance with the intention to avoid default on their huge public debt. ...Show more

Summary

The conception of debt crisis can fundamentally be defined as a massive public debt that is not repayable by any particular nation or a national government and ultimately seeks for financial aid from other countries or any financial institutions (Pescatori and Sy 2004)…
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