The Single European Financial Market: Euro-Zone Debt Crises and Its Regulations | Chapter 01 | Emerging Issues and Development in Economics and Trade Vol. 1
The intent of this work is to present the single European financial market and discuss the pros and cons of its integration in the European Union, the Euro-zone debt crises, its strict regulations (austerities), and its effect on the member-nations’ economies, financial institutions, financial markets, employment, national wealth, and social welfare. An efficient (uncorrupted) financial market might increase return, reduce risk, improve investment, production, and liquidity in the economy, but at the same time, inefficient monetary policies can cause bubbles, unemployment, dependency on foreign capital and multinational firms, and the worst of all the investors lose their wealth and the social welfare is declining. Governments have to increase regulations and improve efficiency of the financial market. Financial markets and institutions (investment banks) have proved recently, with the latest financial (debt) crisis, which has been created by the uncontrolled private institutions th...