The Eurozone crisis has revealed serious flaws within the European Monetary Union

The Eurozone crisis has revealed serious flaws within the European Monetary Union (EMU) and its institutions. Through an examination of Greek macroeconomic indicators from 1998 to 2016, this study analyzes how the structural composition of the EMU, in conjunction with the European debt crisis, affected this country. Greece in particular was selected for this study due to it being considered as the catalyst of the current Euro debt crisis. The variables used include, but are not limited to, divergence indicators, competitiveness indicators, and the Maastricht criteria. Moreover, a careful application of the optimal currency area theory is applied with respect to Greece. the theory argues that a country should join a monetary union only if the costs of doing so are lower than the benefits. The results show that Greece does not conform to the theory. Furthermore, the study reveals that the Greek debt crisis is a result of structural issues within the EMU such as the existence of a monetary union without a fiscal one, in addition to the inability of the Greek government to access monetary instruments.

so in short
The intent of this paper is to analyze the structural composition of the European Monetary Union and its implications for the European Financial Crisis, specifically with respect to Greece.

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