Southern Europe Booms as the North Vacations 

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Southern Europe’s stronger economic recovery 

The reasons for the Eurozone crisis and subsequent economic stagnation in Southern Europe are complex. However, the common economic narrative that Southern European countries were mismanaged is mostly untrue.  While it is true that Southern European economies experienced a significant rise in private sector debt along with real estate bubbles, this was the consequence of capital flows coming from Northern Europe to the South. Moreover, the European Central Bank (ECB)’s one-size-fits-all monetary policy was probably too stimulative for Southern European economies in the run-up to the crisis, thus adding fuel to the fire. 

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