Research On International Comparative Strategies For Government Debt Crisis In Europe And America

Government debts are widely considered as the safest investments in the world.However, the credit crisis of government debts will lead to global capital flowschange, and not only affect in Europe and the United States but also spread to theemerging economies. The debt crises, which like chronic malignant tumors, areeroding the global economy which has not fully recovered.At present, the coping strategies adopted by Europe and the United States are notperfect. The European economic recovery is not clear, and the upward trend of theU.S. economic is not very obvious. Therefore, it is of significant value on the policyorientation by studying the coping strategies of the debt crisis in Europe and theUnited States. The academic research on coping strategies of debt crisis is still stay ina simple comparison level, and did not evaluate the effects of coping strategies. Thereis even nobody who explores the underlying reasons of little effect of copingstrategies and proposes better solutions. Using comparative analysis tools, this thesisaims to analysis of related tools of coping strategies. According to the actual effect ofrelief, we pointed out the defects and proposed a feasible convertible Eurobonds incertain institutional contexts.This thesis consists of five parts. Part1analyzed the background of the debt crisisand the significance of this writing. Brief introduction of the framework was given.Part2discussed the concept of the debt crisis in Europe and the United States, andintroduced briefly the conversion and development of the debt and the debt crisis.Part3gave a detailed comparative analysis of the formation mechanism of the debt crisisin Europe and the United States in accordance with the reasons in order of priority,and paved the way for coping strategies below. Part4is the focus of this thesis. Inorder to better illustrate the difference of coping strategies in Europe and the UnitedStates, this part first expounded the difference between the European debt and the USdebt,then evaluated the effect of coping strategies which included the United Statesand Europe’s own economic recovery, but also on the global economy. Thesuggestions on improving the coping strategies of debt crisis in Europe and the United States are given in the last chapter. Moreover this part proposed a modified version ofthe Brady bond.