Analysis Of The European Sovereign Debt Crisis

The U.S. subprime mortgage crisis has outbroken in2008,sparking the financial crisis and quickly swept through theworld’s financial markets.Affected by the ongoing financialturmoil in Europe and, ultimately, the outbreak of the Europeansovereign debt crisis.This European sovereign debt crisisoriginating in Iceland and Ireland, will soon be Greece, Italyand other countries involved in, and then further contagion tothe entire euro-zone countries, even European economiclocomotive Germany and France have not been spared.In early European sovereign debt crisis, Europeancountries do not pay attention, but has been folded arms, missedthe best time to rescue.With the deepening of the crisis,European banks are also affected, the panic in the market anddistrust gradually worsened. The crisis quickly spread,Ireland, Spain, Portugal and Italy have caught.When a crisissituation intensified, the European countries began to discussrescue countermeasures. To ease the crisis, the European debtcountries to strengthen internal economic governance, theEuropean Central Bank has adopted a series of emergencypolicies, including the euro area banks to provide dollarliquidity support.In order to help each crisis, the EU and the European Central Bank not only adopt austerity policies onthese member states of crisis, but also to seek financialassistance from IMF. European governments and institutionalinvestors in order to solve the crisis have paid a big price.Although a series of relief measures to ease the debt crisiscertainly extent, but the fundamental problems have not beensolved. The adverse effects of the crisis to bring the Europeaneconomy still exist, but also an impact on the world economicrecovery instability.So why focus on the debt crisis erupted in Greece andquickly spread to the whole of Europe, the crisis is spreadingrapidly through what channels open? What is its conductionmechanism? The EU is our largest trading partner. Emergence ofthe European debt crisis will have any effect? And the crisisin our country and from what inspiration, as well as how to avoidmaking the same mistakes our country, these are the paperfocuses on the problem.This paper analyzes the causes of thedebt crisis, both internal factors, but there are externalfactors, and then focus on the transmission mechanism of theEuropean debt crisis from the financial conduction, conductionand psychological expectations of international tradeperspectives. Meanwhile, the European Union and the countries to respond to the European debt crisis and the effectivenessof the measures described, the final analysis of the impact ofthe European debt crisis on China, and the revelation broughtto China.