Crisis in the Eurozone Book Summary - Crisis in the Eurozone Book explained in key points
Listen to the Intro

Crisis in the Eurozone summary

Costas Lapavitsas and others

Understand the root of the eurozone crisis.

3.9 (15 ratings)
16 mins

What is Crisis in the Eurozone about?

These blinks explain the root of the eurozone crisis in a comprehensive, methodical way. They shed light on the deep structural problems the eurozone is facing and outline scenarios that could help restore competitiveness among the southern peripheral states of the region.

Table of Contents

    Crisis in the Eurozone
    summarized in 9 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 9

    Higher inflation rates explain why some countries suffered more than others in the eurozone crisis.

    The economies in the eurozone area are all connected, but when the euro crisis hit Europe in 2009, different countries were affected in different ways. Some countries, like Germany (in the core of the eurozone), fared better than others, like Greece (on the periphery).

    What caused the differing impacts of the crisis?

    We can’t attribute the phenomenon to GDP growth rates, because these were similar across the eurozone.

    The GDP growth rate is a metric that helps determine a country’s economic health: GDP is a barometer for how much a country produces over a period of time; its growth rates describe the increase in output from one period to the next.

    In the eurozone, countries experienced similar GDP growth at the beginning of the 2000s. Greece’s GDP growth rate was about 4 percent, whereas Germany’s was 3.7 percent.

    So if GDP growth wasn’t a factor, can unemployment rates explain why Germany fared better than Greece?

    Unfortunately, they can’t either. In 2006, 8.9 percent of people in Greece were unemployed whereas Germany’s unemployment rate was at 11 percent.

    Thus, just like GDP growth rates, unemployment rates can’t explain the disproportionate impact of the eurozone crisis.

    However, there is one thing that can explain the imbalance: Germany and Greece had vastly different inflation rates, which turned out to be harmful for Greece’s economy.

    Inflation rates refers to how much prices increase over time. In 2006, Greece had an inflation rate of 3.2 percent while Germany’s was 1.58 percent, or half of that.

    The higher rate of inflation meant that Greek products were more and more expensive in comparison to German products, which made Greek companies less competitive.

    So higher inflation rates were a big reason that Greece was hit so hard by the eurozone crisis. But what was causing them?

    Want to see all full key ideas from Crisis in the Eurozone?

    Key ideas in Crisis in the Eurozone

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    Best quote from Crisis in the Eurozone

    The sovereign debt crisis has its roots as much in the performance of Germany as it does in the actions of peripheral countries.

    —Costas Lapavitsas and others
    example alt text

    About the Author

    Costas Lapavitsas is a professor at the University of London’s School of Oriental and African Studies. He is also a member of the Research on Money and Finance (RMF) think tank.

    Who should read Crisis in the Eurozone?

    • Anyone who wants to better understand the eurozone crisis
    • Anyone interested in macroeconomics
    • Anyone interested in fiscal policy

    Categories with Crisis in the Eurozone

    Books like Crisis in the Eurozone

    People ❤️ Blinkist
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked

    Start growing with Blinkist now
    26 Million
    Downloads on all platforms
    4.7 Stars
    Average ratings on iOS and Google Play
    Of Blinkist members create a better reading habit*
    *Based on survey data from Blinkist customers
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 5,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial