The Euro Zone Crisis: 10 Years Later

The video discusses Greece's financial crisis, which revealed a massive budget deficit and led to a series of downgrades and debt restructuring. This crisis was the first of several in the Eurozone, challenging the stability of the single currency. The European Central Bank (ECB), under President Mario Draghi, played a crucial role in stabilizing the situation, particularly through bond market interventions. However, Draghi emphasized that monetary policy alone was insufficient, calling for more fiscal support. As Christine Lagarde takes over as ECB President, she faces significant challenges, including policy divisions within the central bank.

What was the initial cause of the financial crisis in Greece?

• A political scandal

• A sudden increase in oil prices

• A budget deficit larger than expected

• A natural disaster

How many Euro area nations were bailed out following Greece?

• Three

• Four

• Five

• Six

What was the ECB's primary strategy to support the Euro during the crisis?

• Reducing government spending

• Implementing asset purchase programs

• Raising taxes

• Increasing interest rates

What was the impact of the ECB's actions on Greek bond yields?

• They rose to 60%

• They fell from 44% to below 2%

• They remained unchanged

• They increased to 50%

What challenge does Christine Lagarde face as she takes over the ECB?

• Deep divisions over policy within the central bank

• High inflation rates

• A declining Euro value

• A lack of experience in financial matters