Global Economics Paper 4

By using the data (up to the year 2019) your textbook, LIRN-based research, a general reference list in international Economics, such as: Specialized Journals (p.12); General Journals (p.13); Sources of International Data (p.13); General Current information p.14) and the Internet Sources (p. 14), for Euro zone countries (excluding Malta and Cyprus) discuss the impact of the following factors in bringing about the Euro crisis:

1- Budget deficits and national debt

2- Balance of payments

3- Social expenditures

Using graphs compare the above factors for the countries in trouble, PIGS (Portugal, Ireland, Italy, Greece and Spain) vs. other countries in the Euro zone like Germany and France that fared well and contrast which of the above factors may have contributed to the crisis.

The fact that all these countries were using a single currency and did not have the power to devalue their own currency could be another factor you need to consider when analyzing this issue.

Provide your explanations and definitions in detail and be precise, Provide references for content when necessary. Support your statements with peer-reviewed in-text citation(s) and reference(s).