ON THE PREVENTION OF CRISES IN THE EUROZONE

Abstract

This paper focuses on crisis prevention in the Eurozone. I start, however, with the management of the current crisis, focusing on its main weaknesses and on its potential conflicts with crisis prevention. I then distinguish between two types of crises: the financial-fiscal and the fiscal-financial, and discuss their proximate and underlying causes. Based on the analysis, I discuss to what extent the initiatives taken so far have removed the root causes of both types of crisis.