The Greek government-debt crisis started in late 2009 and forced the European Union together with the European

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The Greek government-debt crisis started in late 2009 and forced the European Union together with the European Central Bank to adapt their policies in order to save Greece from bankruptcy.

a. What was the effect of the problems in Greece and other struggling EMU countries on the exchange rate of the euro and the EU economy?

b. Which monetary policy instruments did the ECB use to stabilize the economy and create demand?

c. Suppose that Greece has left the EMU and has introduced the Greek drachma again. Describe some advantages and disadvantages.

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Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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Question Posted: Apr 30, 2024 01:02 AM

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The Greek government-debt crisis started in late 2009 and forced the European Union together with the European

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a The problems in Greece and other struggling Economic and Monetary Union EMU countries had several effects on the exchange rate of the euro and the EU economy Exchange Rate of the Euro The uncertaint...View the full answer

Macroeconomics

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