case study 1422
1. Give a brief overview of the Eurozone. Why and how was it formed? How do member countries benefit from this Union? What is the criteria for admission into the Eurozone? What rules do the member countries need to follow in order to maintain membership? 2. Are all the member countries in the EU the same? Are there economic differences? 3. Where do the problems in the euro zone originate from? Is the euro zone an optional currency area? Why or why not? 4. What role have financial institutions played in the sovereign debt crises? How will their involvement affect negotiations among the European leaders about potential solutions? 5. How do the ESM and EFSF address the sovereign debt crises? What issue do they miss? 6. What did Greece do with the loans they were given? Did they use the money to build their nation or did they use it for short-term consumption? 7. Should the ECB bail out Greece? If so why? If not why not? 8. How sustainable is the euro zone going forward? Will the system be able to find a solution to the sovereign debt crises? Should the EU have let overleveraged country members default? 9. What position should Jason Sterling take on European sovereign debt? Why? What are the advantages/disadvantages of using credit default swaps to profit from this crisis? What are the potential risks? Are there any lessons for Sterling that can be gleaned from previous crises?