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| Hansjörg Herr |
As shown in detail in the recent e-publication (Herr et al, 2017) linked below[1] all countries in the European Monetary Union (EMU) were severely hit by the Great Recession in 2008 and 2009. The initial recovery was relatively quick, but the Eurozone slid into a double-dip recession in 2012 and 2013. Since then there has been a slow recovery. Germany became one of the best performing countries in terms of GDP growth. Greece, Italy, Portugal and Spain suffered massively from the crisis. Development in France also has been sluggish.
The lost decade for some of the EMU countries was caused by ill-advised policies. More fundamentally, the architecture of the EMU is not adequate to create a stable currency, in spite of some reforms after 2008, such as the steps towards banking union.
After the Great Recession, three polices were particularly damaging.
