Comparison Between Latin America Credit Crisis And European Credit Crisis

The sovereign debt crisis occurred in many Latin American countries suchas Mexico, Argentina, Brazil, Chile, Columbia, Peru, Venezuela, since August1982. The sovereign debt crises broke out successively in Greece, Spain, Irelandand other countries and spread to the entire euro zone since2010, have affectgreatly on the world economy. What are performance characteristics, cause andeconomy impact of sovereign debt crises? What measures have taken LatinAmerican and Europe countries to control sovereign debt crises? Comparativeanalysis of these aspects, in our country, for how to deal with the crisis in China,reduce the impact of the crisis on China’s political economy and avoid therecurrence of similar incidents, have important significance. The performancecharacteristics, cause, economy impact of Latin American sovereign debt crisesand European sovereign debt crisis and control measures were studied in thispaper. Combined with the history and present situation of Chinese governmentdebt, some inspiration have been obtain: maintaining great concern about theChinese government’s debt problems, controlling strictly of governmentspending, preventing the bubble economy and financial crisis to transform forthe fiscal risks, maintaining moderate regulation of macroeconomic policies,preventing impact of international hot money on China’s capital market, andtreating discreetly with region monetary cooperation.