An Analysis Of The Cause And Contagion Of European Sovereign Debt Crisis

When the world were experiencing the shock brought by the globalfinancial crisis resulted from the subprime crisis in the U.S.A., the Euro economy whichhad been still deeply in the mud of the global financial crisis was shocked by the Greeksovereign debt crisis broke out at the end of2009.The crisis soon swept theeuro-zone,and the “PIIGS”countries such as Ireland,Italy,Spain,Portugual along withGreece faced the severest situations.The European sovereign debt crisis not only havebrought influence on European economy,but also affected the political and social livesof these countries.Meanwhile the crisis also had great impact on world economy. So theanalysis of the cause and contagion of European Sovereign Debt Crisis is full ofrealistic meaning for the crisis countries which are carrying out measures to prevent thespread of debt crisis.It is also theoretically meaningful to study this item at present,whenthere is not a conclusion widely accepted in the academe all over the world about theitem.Based on existing literatures,this article not only analyse deeply the cause andcontagion of European Sovereign Debt Crisis from multiple perspective,but reveal theroot of the European Sovereign Debt Crisis standing on the Marxism PoliticalEconomy.Besides,compare the cause of debt crisis and that of the subprime crisis in theU.S.A..At last,evaluate the countermeasures of solving sovereign debt crisis andpropose the enlightment of Chinese government debt management,capital marketconstruction and entering the district money system.