The Study Of The Impact Of Euro Internationalization On European Sovereign Debt Crisis

The European debt crisis and the spread is a variety of factors caused by external factors,from the point of view,by 2008 the impact of the international financial crisis,sluggish economic growth in the euro zone,the three major international rating agencies have repeatedly lowered international rating crisis in China,the European debt crisis intensified.Meanwhile,because of the challenge of the euro to the US dollar’s international monetary hegemony,the US used Goldman Sachs Group and the world’s three largest rating agencies to boost the European debt crisis.But the main cause of the outbreak of the European debt crisis lies in its internal factors.The economic development of the countries in the EU is uneven,and the economic strength gap between the southern and Northern European countries is large.The establishment of the ECB has led to the disunity of the fiscal and monetary policies of the eurozone.Some countries in the euro area have been carrying out high welfare policies,and high social welfare spending will be a heavy burden on the national government of the euro zone.In addition,the lack of financial regulation in the euro area is not compatible with the rapid development of financial innovation.The debt crisis is intensified in the eurozone countries.Both the internal factors of the European debt crisis: fiscal policy and monetary policy,and macro-control policy failure,welfare overload,eurozone economic development is not balanced,inadequate supervision,financial crisis relief mechanism is missing,or external factors: the influence of the European debt crisis in 2008 the impact of the international financial crisis,the international rating agency and the dollar the pressure,these are basically due to the establishment of the birth of the euro and the European Central Bank raised.As a super sovereign currency,the euro is different from the US dollar and Japanese yen’s internationalization process.It is completed at the same time of regional monetary integration and currency internationalization.The birth process of the euro is its internationalization process.That is why the euro is born with some shortcomings: lack of stable economic foundation,lack of stable political foundation and lack of stable institutional framework.In the euro the shortage of natural foundation,the European Central Bank also has some inevitable defects: one is the single monetary policy and regional economic development imbalance exists conflict,two is the unification of the exchange rate system to expand the gap of the level of economic development of countries in the euro zone,three is the lender of last resort function deficiency.The inherent deficiencies of the euro and the various institutional defects of the European central bank inevitably have a serious negative impact on the balanced development of the euro area economy,thus laying a hidden danger for the outbreak of the European debt crisis.The birth of the euro has increased the difficulty of macroeconomic regulation and control of the members of the euro zone,exacerbating the difficulty of economic recovery and amplifying the vulnerability of the peripheral countries and other peripheral countries.It is the issue of the euro that has led to the outbreak and spread of the European debt crisis,the essence of the European debt crisis is the currency crisis and the crisis of the euro.The conduction path of internationalization of the euro European debt crisis triggered can be summarized as follows: the internationalization of the euro for the eurozone unified monetary policy,unified monetary policy in the euro zone countries fiscal policy and monetary policy,macroeconomic policy does not match the failure to trigger a series of social problems,the relief mechanism lack of relief measures ineffective eventually led to the debt crisis in europe.The influence mechanism of the internationalization of the euro debt crisis in Europe is divided into the following aspects: one is the independence of monetary policy to the exchange rate adjustment mechanism failure disappeared,two is the internationalization of the euro led to imbalance of macroeconomic regulation mechanism in different countries,the three is the internationalization of the euro debt caused by the illusion of leading to the failure of the market mechanism,the four is the internationalization of the euro sparked a geo economic dispute lead the international coordination mechanism of economic imbalance.After the outbreak of the crisis,the euro area countries have adjusted the fiscal policy and implemented the fiscal tightening policy,hoping to use the tight fiscal policy to solve the two problems of high debt and low growth.Meanwhile,the euro area countries also strengthened the construction of the economic governance system,strengthened the political coordination mechanism,set up the rescue mechanism,and the European Central Bank was gradually becoming the "last lender".The European Union also launched the financial convention,and established a single regulatory system.The euro zone problems exposed by the European debt crisis and the policy measures taken in recent years to deal with the debt crisis in the eurozone deserve our country’s experience and lessons.First,in the process of participating in regional financial and monetary cooperation,China should not be quick to succeed,but should be carried out carefully.Second,the problem of local debt in China is more prominent.China should improve the early warning mechanism of local debt and promote the construction of local government’s credit rating and bankruptcy mechanism.Third,in the use of fiscal policy and monetary policy,China must use the situation with each other.Moreover,drawing on the austerity policies adopted by European Union countries in recent years,China should also realize that,in order to boost the economy,we should not adopt the expansionary fiscal policy blindly,but we will not achieve the desired results.To boost the market’s confidence and make full use of the power of the private sector is also a good choice for the recovery of the economy.Fourth,our country in the formulation and implementation of social security policy should take full account of the status of China’s economy and the economic and social development capacity,to ensure the continuous improvement of people’s living standards,but also not to make the economy bear too much pressure,to ensure sustained and healthy development of economy.Fifth,China should actively learn from the experience and lessons from European and American countries,strengthen the supervision of the shadow banking system,and create a good financial environment for the development of our economy.At the same time,China should further establish and improve the crisis relief mechanism suitable for the actual situation of our country,and stabilize the market expectation and confidence.Sixth,the process of RMB internationalization should be steadily pushed forward.We must not rush to instant success.In the process of RMB internationalization,we must take the premise of ensuring China’s financial security,monetary sovereignty and healthy economic development.