papers.ssrn.com/sol3/papers.cfm?abstract_id=1438567
Why Europe will suffer more
Daniel Gros
july 2009
Europeans have a tendency to call the financial
crisis a US problem, or a crisis precipitated by
the ‘Anglo-Saxon’ model. The data suggest
otherwise. Moreover, the corporate sector in Europe
has a much lower capacity to finance investment from
internal sources of funds, which implies that a
recovery of investment in Europe will be much more
difficult than in the US, as long as the banking sector
remains weakened by excessive levels of leverage.
The cost of the crisis could thus be much larger in
Europe than in the US.
Another reason why Europe was as exposed as the US
to this crisis is that
Europe experienced the same real
estate price bubble as the US.
[Modificato da pax2you 22/06/2010 18:05]