Economics- Topic is on PIIGS or PIGS which refers to the economies of Research Paper

Economics- Topic is on PIIGS or PIGS which refers to the economies of portugal, Ireland, Italy, Greece, and Spain. Briefly explain the Piigs issue in regards to the world economy - Research Paper Example With these and several other multiplier challenges, the fate of the performance of these countries seems to be hanging on the balance. The following discourse attempts to expound on the global issues with regard to prospects of economic performance from the PIIGS countries. By virtue of being member states of the European Union that is economically unified by the Euro, PPIGS countries present a challenge not only to the eurozone but to the entire world. One of the factors making these countries to possess a critical role in world economics is therefore pegged to the fact that the Euro has grown to be an occupant of the top world currencies. According to Bercsten (7), Europe representation in world economy is directly proportional to the performance of the Euro in domestic economies which will in turn be extrapolated to a global impact. The author reckons that the position held by Europe with regard to world economic stage is very significant such that the developments in PIIGS ought to be a concern for any other economy remotely located out of Europe. According to Roubini (34), financial crises in the recent world economic occurrences can be predicted from the build up of economic vulnerabilities that the global economy was exposed to. In realization of the role played by political fortunes of a country to its prospects of economic survival, the author states that the political class ought to handle financial policies as if they did that to the entire world. The author reckons that the political interventions undertaken to cool down the PIIGS economic turmoil might not offer the appropriate solution to the entire world economy. By likening the economic crisis in PIIGS to a disease, Roubini (34) predicts that the intervention might prove to be a dangerous precedent set for the global economy by stating that the drug prescribed is toxic and