|Author Name||FUKAO Mitsuhiro (Faculty Fellow, RIETI)|
|Creation Date/NO.||June 2012 12-P-011|
|Research Project||Policy Mix for Fiscal Consolidation Without Harming Japan's Economic Recovery
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The Greek sovereign debt crisis that started in 2010 has spread to Ireland, Portugal, Spain, and Italy. In this paper, we look into the deep origin of this crisis by overviewing the history of the European monetary union, the divergent inflation rates, the balance of payment imbalances among euro-area countries, and the role of the European Central Bank during the crisis. This paper summarizes important insights into the possible future developments for the Japanese budget crisis.