European Sovereign Debt Crisis Causes, Effects And Countermeasures

This paper begins from the European sovereign debt crisis. On the basis ofcombing the background and knowledge of the international monetary system,European integration and the euro, explores the causes and impact of the Europeansovereign debt crisis. There are both extrinsic and intrinsic factors lead to Europeansovereign debt crisis. External causes are the follow-up impact of the financial crisis,the “America conspiracy theory" and so on. The intrinsic causes are governmentdishonesty and dereliction of duty, the integration of monetary policy anddecentralized fiscal policy mismatch with each other, the imbalance of the industrialstructure, the economy lacks endogenous and steady-state and so on. And then pointout a problem: the European sovereign debt crisis will add international political andeconomic situation in the uncertainties. However, the main tone of the futuredevelopment about the European Union and the euro zone is "merge" instead of"separation". In addition, the paper proposes both existing coping methods andoptional methods to defuse the crisis, Extend to the association about Chinese foreignexchange reserves and "euro bonds", and then explore both the intersection of supplyand demand. It is believed that to hold a certain number of euro bonds could meetboth the requirements economic and political interests. The paper introduces thethought and research from a Chinese perspective, in order to contribute a positiveforce to defuse the crisis.