The Double Crisis in the Eurozone: Recession, Stagnation and High Unemployment

  • Enrico Marelli
  • Marcello Signorelli


The chapter, after illustrating the main events characterising the global financial crisis and the Great Recession, reviews the (generally prompt) economic policy responses in the principal economies of the world. It then focuses on the sovereign debt crisis affecting some Eurozone countries, especially in the periphery, showing how the ‘spreads’ of the Portugal, Ireland, Italy, Greece, Spain (PIIGS) suddenly increased and contagion occurred. The impact on real economic activity is investigated by stressing the fall in aggregate demand and its components (with widening output gaps), and the dire consequences on unemployment, particularly of young people.


Financial crisis Great Recession Sovereign debt crisis Spreads PIIGS Stagnation Unemployment 


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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Enrico Marelli
    • 1
  • Marcello Signorelli
    • 2
  1. 1.University of BresciaBresciaItaly
  2. 2.University of PerugiaPerugiaItaly

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