Open Access Senior Thesis
Bachelor of Arts
© Stephanie C. Ramos
The intent of this paper is to analyze the structural composition of the European Monetary Union and its implications for the European Financial Crisis, specifically with respect to Greece. This analysis will be driven by a trend analysis of several economic variables from 1999-2010. These variables range from the four requirements set under the Maastricht criteria, competitiveness indicators, and relative European trade balances, to international investment position. A quantitative and empirical analysis of this data finds that the Greek crisis was a result of structural issues with the EMU and the Greek government. The ECB’s inability to enforce the Maastricht Criteria and independent fiscal policy, as well as Greece’s inability to implement efficient fiscal and economic policy, resulted in growing imbalances within the Euro area, as well as a loss of competitiveness and irresponsible rise in sovereign debt for Greece. It is inferred that the EMU was ineffective in achieving its goals of integration; that Greece was not ready to join the EMU when it did; and therefore Greece as a Member State of the EMU was destined to fail.
Ramos, Stephanie C., "A Structural Analysis of the European Monetary Union and its Effect on Greece in Light of the European Financial Crisis" (2011). CMC Senior Theses. 239.