Publication

This paper uses a root cause analysis to identify the causes of the eurozone crisis, comparing it with the causes of the Latin American, the Asian, and the sub-prime mortgage crisis in the US. The paper argues that the root causes of the eurozone crisis were overleveraging, and the flaws in the design of the economic and monetary union. The paper also examines the various channels through which the eurozone crisis has impacted Asia and concludes that the overall adverse impacts have been manageable so far, but cautions that it could be more serious in the future.