The greece debt crisis european debt markets

Reference no: EM131225186

Impact of the Greece Debt Crisis European debt markets have become integrated over time, so that institutional investors (such as commercial banks) commonly purchase debt issued in other European countries.

When the government of Greece experienced problems in meeting its debt obligations in 2010, some investors became concerned that the crisis would spread to other European countries.

Explain why integrated European financial markets might allow a debt crisis in one European country to spread to other countries in Europe.

Reference no: EM131225186

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