The Study On The Trends Of Debt Development In Euro Zone

From the establishment of Euro Area, economies in Euro Area were developing steadily. However, with the eruption of Europe debt crisis, the economic development of Euro Area is staggering. Traditional regional monetary cooperation theories could not provide sufficient support to cope with debt problems under the structure of regional monetary cooperation. As a result, it is necessary to study the debt problems in Euro Area from new perspectives.The first study part of the dissertation is to make researches on the trends of debt development in economies of Euro Area. By applying different methods of financial development convergence test, the trends of debt development of different patterns of economies in Euro Area are researched. Based on these studies, dynamic panel VAR models and M-F debt models are adopted to figure out important variables that have important effects on the trends of debt development and to investigate into the interaction mechanisms among variables. According to the results of econometric researches, the suggestions are given to provide possible solutions to settle debt problems in Euro Area. Thus, in a sense, this dissertation has some realistic significance.