DWS Global Financial Institute (DGFI) has partnered with Professor Bodo Herzog of ESB Business School, Reutlingen University, to offer a truly innovative view of the root causes and economic impacts of the European sovereign debt crisis.
In the DGFI’s latest white paper*, Professor Herzog, in close cooperation with DWS Investments’ Chief Economist Johannes Müller, presents his novel approach to understanding the euro crisis through an accurate analysis of how implicit debt, especially foreign debt holdings, have had significant negative effects on the domestic growth of European states. He also offers a careful analysis of the region’s current account imbalances and economic competitiveness.
While Professor Herzog demonstrates that the overlap of economic, political, and institutional issues have triggered a contagious effect throughout the eurozone, he raises the point that not all of European states fell victim to the debt crisis for the same reasons and causes.
Finally, and perhaps most importantly, Professor Herzog develops and offers an innovative “Investors’ Toolbox“ that supports decision-making for professionals in asset management as well as other industries in the current and future sovereign bond markets.
Chief Economist Müller commented, “The white paper offers a comprehensive view of all aspects of the eurozone crisis, unlike current financial markets or media discussions wherein only one aspect of the crisis, such as the debt banking or competitiveness issue is highlighted.“
To read the White Paper in full, please click on the below:
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