The following are the main questions that have been answered in this article.
Q1. What is the euro crisis?
Q2. How long will it take to resolve the crisis?
Q3. What are the requirements to be performed to get rid from the crisis?
Q4. Who can solve the crisis?
Q5. What are the main impacts on the other economies? How does it impact others?
Q6. Can we expect crisis like this one in the future?
A1. The euro crisis is a stern and more uneconomic situation in which the problem of massive amounts of debts, mainly, that are currently on the balance sheets of some euro region governments (embodying the periphery and core states), is being taken into account seriously, and trying to bring down the levels of debt, i.e. a process towards deleveraging underway at least to some extent for now, which is in turn affecting the EU nations and all other states of the global economy, owing to the existence of economic dependency between economies and economic agents and other requirements. Urged by the lenders to borrowing countries to cut their spending on both, technically termed as economic and non-economic activities and measures to step up tax rates, are also the core parts which are, according to some famous experts in the globe, they are adding fuel to the fire.
A2. The answer to this key question is banked on many economic and non-economic factors.
In case, at least sufficient number of economic players/agents work together, economically, effectively, efficiently, scientifically and also persistently (and passionately would be great) by respecting the time, rules, regulations, teamwork, etc. Then, the predicaments can be resolved within a calculated or stipulated period of time. The probability to happen this is quite low due to many economic reasons, major ones are: politicians have different opinions which are strong and more persons residing in those economies are unwilling to concur to the current measures undertaken by their leaders to solve the crises, etc.
But practically, it is close to impossible to solve any big economic issue entirely in the global economy.
A3. The following are requirements to be performed to solve the euro crisis:
- Being respectful to rules, regulations, time, etc by adequate economic players at least. Please note that here adequate economic players mean economic agents of both private and public sectors.
- A persistent team work by at least sufficient number of economic players is equally indispensable.
- No implementation of austerity measures. Why? Check this austerity means obstruction
- An effective teamwork for a persistent period by again at least a sufficient number of economic players.
- An efficient teamwork for a persistent period is also demanded from at least an adequate number of economic agents.
- A scientific teamwork for a persistent period is also necessary to be unleashed by them.
- An economic (profitable) teamwork for a persistent period is also a core part in the process.
- Economic spending must occur and it has to be done by at least sufficient amount of economic players. Players embody individuals, companies, banks, governments, and many more. Why such spending is imperative? Please visit this link. economic spending is a massive pro to the global economy
- At least adequate number of economic players needs to be productive in also other areas of commercial interest.
The above must-do activities are not adequate and every situation consists of some of uncertainty and newness and thus, along with the above measures or recommendations, flexible plans have to be another vital segment in the process of solving the crisis indeed, as per me.
A4. The crisis did emerge owing to a few economic players but technically due to all inter-linked economic agents or monetary factors, in a broad sense or when seen from a macro perspective. As a result, the crisis needs dogged efforts from all the inter-connected forces/players/variables, too. So, neither politicians nor economists can solve the crisis entirely. In other words, they are vital but not the fullest extent.
The following is a list of persons who should be involved in the process to solve issues with a persistent and genuine integration and other must-have stuff aforementioned:
- Economists gotta have a real lust to solve the issues;
- politicians need to embrace realistic ideas and assent with other economic players;
- advisers of all sorts;
- bankers from inside the area and from the outside area;
- central bankers including from the region and outside the area;
- industrialists encompassing domestic and international;
- investors embodying domestic and foreign;
- Small businessmen and businesswomen from the region and outside the region;
- Blue collar workers should have the apprehension of the measures taken by their leaders and should genuinely work with other economic players; and
- Other economic players such as specialized planners, decision makers, etc.
A5. It certainly has good and bad impacts on the rest of the economies:
- A favorable impact on some economies as competition in the international market has waned due to the crisis in the zone. This made some economies to attract businesses into their areas.
- Unfavorable and direct impact on export oriented nations such as Germany, China, Vietnam, etc to the euro area as demand for their commercial stuff has waned.
These types of economic ups and downs are inevitable due to the following main reasons:
- The existence of money which is a sort of force or magnet that is making people to do anything for their survival, stability and much more.
- The existence of profit factor due to greed, etc.
- The existence of competition variable due the many economic and non-economic reasons, etc.
A6. Technically, it is hard to supply the right answer to this question as it entirely banked or contingent or dependent on all connected economies on how they try to accumulate economic wealth for many purposes, in a broad sense. But as per me, Naveen Kalyani, as long as money, greed, profit motive and competition prevail, crises cannot be shunned in the global economy indeed at all.