eurozone debt crisis com
TRANSCRIPT
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- 1 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
- 1 -Prof. Dr. Rainer Maurer
Digression:Digression:The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
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- 2 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Digression:The Eurozone Debt Crisis 2010
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- 3 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
The Return of the Interest Rate Spreads : After the foundation of the European Monetary Union (EMU)
interest rates spreads between the member states nearlydisappeared .
By the end of the year 2008, interest rate spreads reappeared .
For some countries interest rate spreads have become large :
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- 4 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%4%
5%
6%
7%
8%
9%10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
SpainInterest Rate Spread
Source: Eurostat, Central Bank of Spain, Own Calculationswww.rainer-maurer.co
Interest Rate
2,0%
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- 5 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
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3%
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5%
6%
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8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
IrelandInterest Rate Spread
Source: Eurostat, Own Calculations www.rainer-maurer.com
Interest Rate
2,5%
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- 6 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
PortugalInterest Rate Spread
Source: Eurostat, Central Bank of Portugal, Own Calculationswww.rainer-maurer.co
Interest Rate
3,4%
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
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RAINERMAURER,Pforzheim
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
GreeceInterest Rate Spread
Source: Eurostat, Own Calculations www.rainer-maurer.co
Interest Rate
6,9%
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8/38- 8 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
What caused the crisis? Increasing public and private debt positions
....have casted doubt on the ability of governments and bankssafeguarded by governments to pay back debt.
Investors fear of a default of governments on their debt and....demand therefore a higher risk premiums .
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9/38- 9 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
Total Country Int. Net Debt Posi tion GDP Ratio Total Government Debt GDP-to-Ratio
SpainInterest Rate Spread and Debt-to-GDP Ratios
Source: Eurostat, Central Bank of Spain, Own Calculations www.rainer-maurer.com
Interest Rate Debt-to-GDP
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
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10/38- 10 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10-60%
-50%
-40%
-30%
-20%-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
Total Country Int. Net Debt Posi tion GDP Ratio Total Government Debt GDP-to-Ratio
IrelandInterest Rate Spread and Debt-to-GDP Ratios
Source: Eurostat, Own Calculations www.rainer-maurer.com
Interest Rate Debt-to-GDP
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11/38- 11 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
Total Country Int. Net Debt Posi tion GDP Ratio Total Government Debt GDP-to-Ratio
PortugalInterest Rate Spread and Debt-to-GDP Ratios
Source: Eurostat, Central Bank of Portugal, Own Calculations www.rainer-maurer.com
Interest Rate Debt-to-GDP
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
Total Country Int. Net Debt Posi tion GDP Ratio Total Government Debt GDP-to-Ratio
PortugalInterest Rate Spread and Debt-to-GDP Ratios
Source: Eurostat, Central Bank of Portugal, Own Calculations www.rainer-maurer.com
Interest Rate Debt-to-GDP
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
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12/38- 12 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
10Y Government Bond Interest Rate Germany (left scale) Interest Spread compared to Germany (left scale)
Total Country Int. Net Debt Posi tion GDP Ratio Total Government Debt GDP-to-Ratio
GreeceInterest Rate Spread and Debt-to-GDP Ratios
Source: Eurostat, Own Calculations www.rainer-maurer.com
Interest Rate Debt-to-GDP
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14/38- 14 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Digression: The constant debt-to-GDP ratio budget surplus:
Debt-to-income ratio:
1st derivation with respect to time:
Increase of debt = Primary Deficit + Interest Payments
2dtdY
dtdD
YDY
dtdk =
YD
k =
dtdD B= D*i+
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15/38- 15 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Digression: The constant debt-to-GDP ratio budget surplus:
1st derivation with respect to time: 2dtdY
dtdD
YDY
dtdk =
2dtdY
YDY)D*iB(
dtdk +=
YD
YYDi
YB
dtdk dtdY+= =
YD
Yi
YB
dtdk dtdY
+=
=
=>YD
Yi
YB dtdY0
dtdk =
Condition for a constant debt-income-ratio: dk / dt = 0 !
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16/38- 16 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Digression: The constant debt-to-GDP ratio budget surplus:
YD
Yi
YB dt
dY
If GDP growth is smaller thanthe interest rate, a countrymust run a primary currentaccount surplus to keep the
debt-GDP-ratio constant!
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17/38- 17 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Digression: The constant debt-to-GDP ratio budget surplus:
YD
Yi
YB dt
dY
If GDP growth is larger thanthe interest rate, a country can run a primary current accountdeficit to keep the debt-GDP-
ratio constant!
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18/38- 18 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Applying this formula to the data of the countries shows thattheir actual account surplus is far away from the surplus necessary to keep their debt-to-GDP ratio constant :
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19/38- 19 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
-15%
-10%
-5%
0%
5%
10%
15%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
-15%
-10%
-5%
0%
5%
10%
15%
Constant Intern. Net Debt-to-GDP Ratio Current Account Surplus (right scaActual Current Account Surplus
SpainCurrent Account Surplus Gap
Source: Eurostat, Own Calculations www .rainer-maurer.co
Percent of GDP
Current account surplus necessary to stabilize theInternational Debt-to-GDP ratio is 7,5% of GDP .
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
Acutal current account surplus - 5,5% of GDP !
=> Current account surplus gap = 13 % of GDP !
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20/38- 20 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-15%
-10%
-5%
0%
5%
10%
15%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
-15%
-10%
-5%
0%
5%
10%
15%
Constant International Net Debt-to-GDP Ratio Current Account Surplu
Actual Current Account Surplus
PortugalCurrent Account Surplus Gap
Source: Eurostat, Own Calculations www.rainer-maurer.co
Percent of GDP
Current account surplus gap = 18,5 % of GDP !
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21/38- 21 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-15%
-10%
-5%
0%
5%
10%
15%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
-15%
-10%
-5%
0%
5%
10%
15%
Constant International Net Debt-to-GDP Ratio Current Account Surplus
Actual Current Account Surplus
IrelandCurrent Account Surplus Gap
Source: Eurostat, O wn Calculations www.rainer-maurer.co
Percent of GDP
Current account surplus gap = 15 % of GDP !
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- 22 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-15%
-10%
-5%
0%
5%
10%
15%
Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
-15%
-10%
-5%
0%
5%
10%
15%
Constant International Net Debt-to-GDP Ratio Current Account Surplus
Actual Current Account Surplus
GreeceCurrent Account Surplus Gap
Source: Eurostat, Own Calculations www .rainer-maurer.co
Percent of GDP
Current account surplus gap = 25 % of GDP !
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- 23 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
Austria
Belgium
Cyprus
Germany
Spain
FinlandFrance
Greece
Ireland
Italy
Luxembourg
Malta
Netherlands
Portugal
Slovenia
Slovakia
United Kingdom
3,0%
3,5%
4,0%
4,5%
5,0%
5,5%
6,0%
-15% -10% -5% 0% 5% 10% 15% 20%
Constant IDP-to-GDP Ratio C urrent Account Surplus Ga
Correlation Coefficient: 70,1%
Source: Eurostat, Own Calculations www.rainer-maurer.co
Interest Rates (Average: Sept. 2009 - May 2010) and Constant International DebtPosition-to-GDP Ratio Primary Current Account Gap (Average: Jan. 2009 - Aug. 2009
Nominal InterestRates 10Y Bonds
The larger the
current accountgap , the higher therisk premium!
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- 24 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
AustriaBelgium
Cyprus
Germany
Spain
Finland France
Greece
Ireland
Italy
Luxembourg
Malta
Netherlands
Portugal
Slovenia
Slovakia
United Kingdom
3,0%
3,5%
4,0%
4,5%
5,0%
5,5%
6,0%
-2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Interest Rates (Average: Sept. 2009 - May 2010) and Constant Government Debt-to-GDP Ratio Primary Government Budget Gap (Average: Jan. 2009 - Aug. 2009)
Nominal InterestRates 10Y Bonds
Constant Gov. Debt-to-GDP Ratio Gov. Budget Ga
Correlation Coefficient: 65,4%
Source: Eurostat, Own Calculations www.rainer-maurer.co
The larger thegovernment budgetgap , the higher the
risk premium!
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- 25 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
The situation is precarious !
How to get out of this???
To help countries like Greece, Portugal, Spain and Irelandtheir " Current Account Gap" must be reduced :
DepressedEMU
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
t
t
t
t
t
dtdY
tt
to
YB
YD
Yi
YB
YB t
=
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- 26 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How to get out of this???
Special problem of indebted countries , which are member states of a monetary union :
1. They have no own currency they can depreciate to improvetheir current account:
2. They have no own currency to inflate away debt !
e $ => P e $ => ( EX IM ) < P $
Reduction of currentaccount gap!
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
Digression: How to "inflate away" government debt ???
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- 27 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
- 27 -Prof. Dr. Rainer Maurer
Digression: How to inflate away government debt ???
The present value (=PV t,T=market value) of government debtwith a face value of 1 is given by the formula:
If the market interest rate i t,T=2% is equal to fixed interest rate of governmentdebt z t,T=2%, the market value is equal to the face value = 1:
If an increase of inflation by 3% increases the nominal market interest rate
(=real interest rate + inflation rate) by 3% and the average maturity of government debt is T=10 years, the market value of government debt falls bynearly one quarter:
TT,tT,t
TT
T,tT,t )i1(
1iz
)i1(11PV
++
+=
1)%21(
1%2%2
)%21(1
1PV TT,tT,t
TT
T,tT,t =++
+=
The Dark
Corners of Fiscal Policy
77,0)%51(
1%5%2
)%51(1
1PV 10T,tT,t
T10
T,tT,t =++
+=
Create a little bit
inflation andbuy back
your debt !
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- 28 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How to get out of this???
Special problem of member states of a monetary union :
3. Leaving the monetary union will cause the countries debtposition to explode !!!
If Greece would leave the eurozone:Its new currency (the Neodrachmae) will depreciate againstthe Euro: e Neodramae
However, Greek government bonds (as well as private debt)are denominated in Euro D
!
The Greek debt measured in Neodramae will grow in case of a depreciation:
DNeodramae = D / e Neodramae
( )
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- 29 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this?
The EMU is a monetary union across countries which haveasynchronous business cycles :
-8%-7%-6%-5%-4%-3%-2%-1%0%1%2%3%
4%5%6%7%8%
2 0 0 0 Q 0 1
2 0 0 0 Q 0 3
2 0 0 1 Q 0 1
2 0 0 1 Q 0 3
2 0 0 2 Q 0 1
2 0 0 2 Q 0 3
2 0 0 3 Q 0 1
2 0 0 3 Q 0 3
2 0 0 4 Q 0 1
2 0 0 4 Q 0 3
2 0 0 5 Q 0 1
2 0 0 5 Q 0 3
2 0 0 6 Q 0 1
2 0 0 6 Q 0 3
2 0 0 7 Q 0 1
2 0 0 7 Q 0 3
2 0 0 8 Q 0 1
2 0 0 8 Q 0 3
2 0 0 9 Q 0 1
2 0 0 9 Q 0 3
-0,020
-0,015
-0,010
-0,005
0,000
0,005
0,010
0,015
0,020
Germany (left scale)USA (left scale)Standard Deviation without Cyprus, Malta, Slovenia, Slovakia, USA (right scale)
GDP Gaps of ECU Member States and the USA(Trend Deviation of GDP in Percent of Trend measured by Hodrick-Prescott-Filter)
Source: Eurostat, Own www.rainer-maurer.comGDP Gap = Actual GDP minus trend GDP in % of trend GDP
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- 30 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this?
As a result, inflation rates across the EMU member state aretypically quite different :
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
100%
105%
110%
115%
120%
125%
130%
1 9
9 9
2 0
0 0
2 0
0 1
2 0
0 2
2 0
0 3
2 0
0 4
2 0
0 5
2 0
0 6
2 0
0 7
2 0
0 8
2 0
0 9
Euro area (16 countries) Ireland Greece Spain Portugal
GDP Price Deflator Relative to GermanyIndices Relative to Germany (1999 = 100%)
Source: EU Commis sion, AMECO, Own Calculations www.rainer- maurer.com
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- 31 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? The European Central Bank can set only one main refinancing
rate .
Therefore, after the start of the EMU, nominal interest rates across the eurozone converged .
However, convergence of nominal interest rate and differentcountry-specific interest rates causes a divergence of realinterest rates !
=> Countries with a high inflation rate have low real interest rates!
Countries with a low inflation rate have high real interest rates!
InflationInterest NominalInterestReal == i r
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- 32 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? Convergence of nominal interest rate & divergence of real
interest rates:
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-0,1%
0,1%
0,3%
0,5%
0,7%
0,9%
1,1%
1,3%
1,5%
J an. 97 Jan. 9 8 Jan. 99 Ja n. 00 J an. 0 1 J an. 0 2 J an. 0 3 J an. 0 4 J an. 05 J an. 0 6 Jan. 0 7 Ja n. 08 Ja n. 09 J an. 1 0
Nominal Interest Rates for 10-Year Government BondsInflation Rates (HCPI)Real Interest Rates for 10-Year Government Bonds
Variance Coefficients across the 12 EMU Founding Member States
Source: Eurostat Own Calculations www.rainer-maurer.com
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- 33 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? Real interest rates compared to Germany:
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-4,0%
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
J an. 9 7 Ja n. 98 J an. 99 Ja n. 0 0 J an. 01 Ja n. 02 Ja n. 03 J an. 0 4 J an. 05 J an. 06 Jan. 07 Ja n. 0 8 Ja n. 0 9 J an. 10
Germany Spain Greece Ireland Portugal
Real Interest Rates for 10 Years Government Bonds (based on BIP-Deflator)
Source: Eurostat, Own Calculations www.rainer-maurer.com
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- 34 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? Real interest rates and net international debt position:
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
Portugal
Netherlands
Italy
Ireland
Greece
France
Finland
Spain
GermanyBelgium
Austria
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
1,3% 1,5% 1,7% 1,9% 2,1% 2,3% 2,5% 2,7%
December 2009 Accumulated Net Debt Position in Percent of GDPand Average Real Interest Rate from Januar 1999 to December 2009
Real Interest Rate
Quelle: Eurostat, Eigene Berechnungen www.rainer-maurer.com
Net Debt Position in % of GDPin % of GDP
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- 35 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? Inflation rates and net international debt position:
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
Portugal
Netherlands
Italy
Ireland
Greece
FranceFinland
Spain
GermanyBelgium
Austria
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
1,4% 1,6% 1,8% 2,0% 2,2% 2,4% 2,6% 2,8% 3,0% 3,2%
December 2009 Accumulated Net Debt Position in Percent of GDPand Average HCPI Price Index from Januar 1999 to December 2009
Inflation Rate
Net Debt Position in % of GDPin % of GDP
Quelle: Eurostat, Eigene Berechnungen www.rainer-maurer.com
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- 36 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
0
1
2
3
4
5
6
7
8
9
10
0 1 2 3 4 5 6 7 8 9 10
0
1
2
3
4
5
6
7
8
9
10
0 1 2 3 4 5 6 7 8 9 10
How has it come to this? Consequently, high inflation countries experienced on average
lower real interest rates than low inflation countries:
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
Low inflation country:r L*= i*- L
Excess Supply
S(Y)
I(Y)
S, I
r
r L*
High inflation country:r H*= i*- H
Excess Demand
S(Y)
I(Y)
r
r H*
S, I
The integrated EMU capital market is in equilibrium, whilethere is a disequilibrium in single countries!
r *
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- 37 -Prof. Dr. Rainer Maure
RAINERMAURER,Pforzheim
How has it come to this? Countries with high inflation rates built up a net international
debt position . Countries with low inflation rates built up a net international
wealth position .
The Eurozone Debt Crisis 2010The Eurozone Debt Crisis 2010
-1500
-1000
-500
0
500
1000
1500
Jan. 98 Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Jan. 04 Jan. 05 Jan. 06 Jan. 07 Jan. 08 Jan. 09 Jan. 10
Sum of Net International Debt Position of Spain, Greece, Ireland, Portugal
Sum of Net International Debt Position of Germany, Belgium, Luxembourg, Netherlands
Source: Eurostat, Own Calculations www.rainer-maurer.com
International Net Debt Position of Eurozone Debtor and Creditor Countries
Bn. Euro
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8/8/2019 Eurozone Debt Crisis com
38/38
RAINERMAURER,Pforzheim
How has it come to this? Consequently, the eurozone debt crisis is not by chance ! It is caused by a design faulty of the EMU ! What can be done to built a more stable EMU ?
4.2. Financial Market Crises4.2. Financial Market Crises4.2.5. The Eurozone Debt Crisis 20104.2.5. The Eurozone Debt Crisis 2010