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Economic divergences among Eurozone countries have played an increasingly important role in ECB decision-making since the start of the crisis.
LSE EUROPP Blog
  • Sharmila K. King, University of the Pacific
  • Florence Bouvet, Sonoma State University
Document Type
News Article
Department
Economics
Publication Date
6-7-2013
Disciplines
Abstract
Do national economic shocks, such as the debt crisis in Greece, influence ECB interest rate decisions? As Florence Bouvet and Sharmila King note, the ECB officially bases its decision-making on euro-wide data, rather than the situation in individual Eurozone countries. However, this ‘one size fits all’ approach may be inappropriate in cases where there are fundamental economic differences between individual countries. Outlining the results of a study into ECB decision-making, they find that national divergences, particularly among those in the Eurozone’s periphery, have played an increasingly important role during the financial and sovereign debt crises.
Comments
The London School of Economics and Political Science, University of London, European Politics and Policy Blog
Citation Information
Sharmila K. King and Florence Bouvet. "Economic divergences among Eurozone countries have played an increasingly important role in ECB decision-making since the start of the crisis." LSE EUROPP Blog (2013) ISSN: 2572-6803
Available at: http://works.bepress.com/sharmila-king/20/