Impact of Greece Debt Crisis on World Economy

Author(s):

Kovid Kumar Gupta

Published in:

HCTL Open International Journal of Technology Innovations and Research (IJTIR), e-ISSN: 2321-1814

Published on:

30-July-2015

Volume:

Volume 16, July 2015, ISBN:978-1-943730-43-8.

Copyright Information:

© 2015 by the Authors; Licensed by HCTL Open, India.

License Information:

This article is an open-access article distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License.

Abstract

This study aims at exploring the reasons behind the Greece debt crisis that emerged in the 21st century and explains how the crisis made an impact on the world economy. Euro is a common currency used by all the countries of the Euro Zone which benefits them in trade and development of their economies. The Euro Zone treaty specified certain guidelines which restrict their members from borrowing more than 3% of their economic output but the treaty allowed poor European countries to borrow money at low interests from the rich and financially stable, like Germany. This government debt with time became so massive that it was nearly impossible for these countries to repay. The European Central Bank (ECB) was also held responsible for the Euro crises by allowing lower interest rates and providing cheaper loans of more than one trillion Euros, so as to maintain the flow of money between European banks. This study also shows the initiatives undertaken by private and public sectors to mitigate the declining effects. The study was conducted with reference to web based literature and the data is collected from secondary sources like newspapers, articles, journals and publications on European crisis from around the world.


Keywords

Euro Zone, Greece, Debt crisis, Euros.

Cite this Article

Kovid Kumar Gupta, Impact of Greece Debt Crisis on World Economy, HCTL Open International Journal of Technology Innovations and Research (IJTIR), Volume 16, July 2015, e-ISSN: 2321-1814, ISBN: 978-1-943730-43-8.

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