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Practice Questions
Why are high bond yields a problem? Practice Questions
In order for a nation to pay a higher interest rate on its loans, it may use one or several mechanisms. Which of the following is a way in which a government may finance a larger debt?
*
a. raise taxes
b. borrow more
c. both a. and b.
Over time, if a nation borrows excessively, the interest rate on their loans will reach a critical level- that is, the interest rate on future loans is too high for the country to afford. If a country cannot borrow, it can only resolve it through:
*
a. default
b. inflation
c. seeking outside help (bailouts)
d. all of the above
Submit
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The Eurozone Crisis
Course
(23 videos)
Background
The Three Sides of the Crisis
Practice Questions
The Case for Optimism
The Case for Pessimism
European Central Bank
Practice Questions
The Bailout funds
Practice Questions
The Bailout funds
Practice Questions
Why are high bond yields a problem?
Practice Questions
Banking and fiscal union
Practice Questions
The Italian Crisis of 2013
Practice Questions
Further analysis of the problems
The costs of leaving the Eurozone
Practice Questions
Remarks on individual countries
Practice Questions
Currency union collapse in history
Practice Questions
Indicators for Eurozone progress
Practice Questions
Life on the precipice
Practice Questions
Will austerity work?
Practice Questions
Effects on other multilateral agreements
Practice Questions
Underlying theory
Optimum currency areas
Practice Questions
Optimum currency areas and the Euro
Practice Questions
Why is the euro so bland?
Tyler Cowen lecture at the Bruno Leoni Institute (Optional)
Understanding the Eurocrisis (Optional)
Updates and extensions
Iceland: Causes of the Crisis
Iceland: Collapse
Exam
The Eurozone Crisis Exam
