Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 14 , 13 September 2023
Open
Access | Article
Research on the Impact of Eurozone Monetary Policy on EU Economic Growth
* Author to whom correspondence should be addressed.
Abstract
The Greek government-debt crisis is a representative topic that shows the inflexibility of the monetary policy of the ECB and how it can harm the Greek economy in considering different economic conditions. The inflexibility of monetary policy shows the disadvantages of a one-fits-all solution carried out by the ECB in EU 27 and EU15. This study aims to analyze the impact of eurozone monetary policy on its member states and to what extent the inflexibility of monetary policy can be detrimental to a state’s economic growth and price stability. The empirical test and case study are carried out for further analysis, and the results indicate the important role of inflexible monetary policy in the case of the Greek government-debt crisis and its further impact on the steady economic growth of Germany. The ECB’s monetary policy is revealed to be volatile and uncertain, which brought undesirable economic growth outcomes for the Eurozone. However, considering the complexity of integrated monetary union and the previous case of Greece, exiting the Eurozone is not the best solution to recover economic growth.
Keywords
eurozone monetary policy, EU, economic growth, greece
References
1. Srivangipuram.T. “Monetary Policy in the Eurozone: Evaluating the European Central Bank’s interest rate decisions and the needs of member states using a Taylor rule.” (2013).
2. S.Edward and J.Levendis. “What was the role of monetary policy in the greek financial crisis?.” South-Eastern Europe Journal of Economics 11.2 (2015).
3. M.Próchniak and B.Witkowski. “Real economic convergence and the impact of monetary policy on economic growth of the EU countries: The analysis of time stability and the identification of major turning points based on the Bayesian methods.” National Bank of Poland Working Paper 137 (2012).
4. P.De Grauwe and C.Storti. “Is monetary policy in the Eurozone less effective than in the US?.” (2005).
5. R.Wodak and J.Angouri. “Introduction: From ‘Grexit’ to ‘Grecovery’: Euro/Crisis Discourses.” Discourse & Society, vol. 25, no. 4, 2014, pp. 417–23. JSTOR, http://www.jstor.org/stable/24441593. Accessed 16 Sep. 2022.
6. S.Xiang “Why Did Greece Not Choose to Leave the Euro Zone? .” Xiang Songzuo: Why Did Greece Not Choose to Leave the Euro Zone? -School of Economics, Shandong University, https://www.econ.sdu.edu.cn/info/1493/28817.htm.
7. “The European Central Bank Has No Intention to Speed up the Normalization of Monetary Policy, and the Possibility of Raising Interest Rates during the Year Is Still High.” Xinhua Finance, 15 Apr. 2022, https://www.cnfin.com/zs-lb/detail/20220415/3583683_1.html.
8. C.Bean “MONETARY POLICY UNDER EMU.” Oxford Review of Economic Policy, vol. 14, no. 3, 1998, pp. 41–53. JSTOR, http://www.jstor.org/stable/23606481. Accessed 16 Sep. 2022.
9. A.Armstrong, et al. “GREECE AND THE EURO AREA.” National Institute Economic Review, no. 233, 2015, pp. F44–52. JSTOR, http://www.jstor.org/stable/44396539. Accessed 16 Sep. 2022.
10. C.Noyer. “Monetary Policy Formulation in the Euro Area: THE FOCUS IS SOLELY ON PRICE STABILITY.” Business Economics, vol. 36, no. 4, 2001, pp. 57–59. JSTOR, http://www.jstor.org/stable/23490234. Accessed 16 Sep. 2022.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-71-3
- ISBN (Online)
- 978-1-915371-72-0
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/14/20230792
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited