DOC PREVIEW
WVU POLS 103 - European Debt Crisis
Type Lecture Note
Pages 2

This preview shows page 1 out of 2 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 2 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 2 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

POLS 103 1st EditionLecture 27Outline of Last Lecture I. Global Povertya. development- cycle of poverty1. dual economy2. low productivity3. insufficient capital4. few human services Outline of Current Lecture II. International Organization III. European UnionIV. Debt CrisisCurrent LectureInternational Organization IGO- organizations made up of states ex: NAFTA, NATO, EUEU goes beyond other state organizationsSupranational organizations: states give over some degree of their sovereignty therefore, the EU is somewhere between an IGO and a Supranational organizationLast 5 years there has been crisis in the European Union EU-not political but an economic union-states didn’t surrender their sovereignty when they joined-there is a common marketThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-goes beyond “free trade” zones-common legal framework-got its start after the second world war-early 1950s- there was the beginnings of free trade discussions -early 1990s- there was a free trade union but moving towards a political union -2002 Euro became the single currency -states who are members of EU have regulations on what they can do economically -in 2008 there was a financial crisis, things went terribly wrong Much of Europe is having a much harder time than the United States because of globalization- when big countries are struggling that means that everyone is struggling PIIGS (Portugal, Ireland, Italy, Greece, Spain)these countries in particularly are doing very badly economy has shrunk about 7% and it is expected to shrink more Simple fact- debt crisis is that some European countries are struggling to pay back money they have borrowed. Governments borrow money all the time- this is not the crisisthe crisis is that it looks like the government won’t be able to pay back the money it has borrowedthis creates a snowball effect because all the EU states are linked with the same currencywhen a country can’t pay their debts this is called defaulting currency is worth nothing means there will be a recession/depressioncrashing currency can be a good thing exports become cheapstates start buying them because they are so cheapthis begins the solve the problem-jobs are created, more economic activity, more growthper capita Europe can’t default because they don’t control their currency, they can’t even print money because they don’t own itAll European debt it linkedthis means that if one country in the EU defaults the people who have euro investments will pull them out because of uncertainty and the entire EU will collapsethis is an economic problem- but there is a political solutionthe stronger EU countries could bail out the poor ones this doesn’t happen because of moral hazard-countries who get bailed out will just keep making bad decisions if they know that they will always get bailed out in the future.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a


View Full Document

WVU POLS 103 - European Debt Crisis

Type: Lecture Note
Pages: 2
Documents in this Course
Load more
Download European Debt Crisis
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view European Debt Crisis and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view European Debt Crisis 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?