Scenarios of future eurozone development

Bc. Martin Löwe

Diplomová práce

Abstract:

It has been more than 15 years since the implementation of single European currency (in its non-cash form). However we can still see certain problems and doubts concerning euro. The difficulties presented themselves during the economic depression of late years as well as the opinions that the crisis might mean the end of Eurozone as we know it. Present unstable situation in Europe indicates that future of Eurozone might be in danger. Except from political pressures, states of EU will have to face the reality of inhomogeneity of their economies. The economic troubles of Greece are far from being resolved, and situation in the Italian banking sectors has brought the attention of markets and is furthermore far from long-term solution. There is also glorious debt hovering over European Union as well as over United States of America and China, where credit bubble might burst every moment. The bottom line is that same currency is most likely not advantageous for Germany on one side and Greece on the other. 5 scenarios of potential development will created. Every of them concentrates on different possible outcomes in the future. The reasons for such development will be analysed on the base of economic theory and previous experience of the author. The same can be said about the consequences of the potential outcomes. For how long are the states of Eurozone willing to pay the price for mostly political project of the Eurozone? Is it currently advantageous for the Member States of monetary union to have the same currency?

Keywords

Euro, Eurozone, monetary union, trade balance, unemployment, currency

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 31. 3. 2017

Obhajoba závěrečné práce

• Vedoucí: Ing. Petr Procházka, MSc Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics and Management / Economics and Management