The Eurozone crisis: Causes and policy

Fiscal instability, the growth of the public debt, current account deficits, especially in countries which are largely on the periphery of the Eurozone: Portugal, Ireland, Italy, Greece and Spain, the so-called PIIGS countries, have opened numerous questions and provoked various measures for their resolution. The article focuses on the analysis of the causes of the crisis and considers two main approaches to the issue, the anti-crisis measures undertaken now in the Eurozone, but also the evaluation of their performance. The article also identifies the need to construct new, unconventional policies, which should effectively respond to the challenges, so certain measures have been proposed in this direction. [Projekat Ministarstva nauke Republike Srbije, br. 47004]