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Bailouts Lead to Weaker Economies

Kizys, Renatas, Paltalidis, Nikos, Vergos, Konstantinos, (2015), “Bailouts Lead to Weaker Economies”, Economonitor, 28 Οκτωβρίου.

Government bailouts of banks may have made Europe’s fragile economic stability worse rather than better, according to new large-scale research. In addition, a widespread expectation of government support makes banks more vulnerable to collapse. The research, led by Dr Renatas Kizys, an economist at the University of Portsmouth, is the first to suggest large-scale rescues of banks does not stabilise the banking sector or a country’s economy but instead appears to have the opposite effect.

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