What were they key underlying factors that led to the financial conditions immediately prior to the European debt crisis? Describe what market failures, if any, contributed to these conditions. Paragraph.

What was the trigger for the European debt crisis to erupt? Describe the transmission mechanisms in financial markets after the initial shock, and policymakers’ response to them. How did markets view policymakers’ actions, and was the most effective intervention by policymakers? Paragraph

What lessons have been learnt from the euro crisis? Have sufficient changes been made to financial and other institutions to prevent a repeat of the crisis in the future? Paragraph