Study. European Sovereign Debt Crisis

This European Sovereign Debt Crisis is one of the greatest one considering the infectious effect, influential area and recovery measures. The paper takes the European Sovereign Debt Crisis as the selected topic to deeply understand its overall contents, including the causes, afterwards effects and recovery measures. Besides, the paper describes the general prospect and the lesson we learn from it. In this writing, both quantitative and qualitative methods will be used to illustrate this topic. In order to illustrate the effect and influence of this crisis, the quantitative indicator will also be used, such as liquidity, risk index and so on. The prospective conclusions are presented as bellow:Firstly, there are three stages for the beginning of this sovereign debt crisis. It is the distinguishing feature for this crisis that different from any previous ones.Secondly, three underlying reasons, say individual cause, EU system and international reason. The systematic weakness of EU may be the most important one that will hamper the long-term economic development of EU.Thirdly, the afterward effect will go through form like a chain store, from the individual country to the whole area. It will take even longer to explore the effects of this crisis on worldwide economy. In the near future, the negative effects will overweight the positive ones.Fourthly, the current saving measures cannot solve this problem thoroughly, only the comprehensive measures taking place, should the EU become a completely integrated union. Any temporary method will not be effective in the future.Lastly, the crisis shocks our domestic financial market and exporting industry, having adverse effect to carrying out monetary policy. China learned from this crisis that we must observe our own debt matters and make solution of this crisis to keep a smooth and healthy growth.