... disequilibria and debt accumulation in the periphery This imbalance became unsustainable, and this unsustainability was a causal factor in the global financial crisis of 2007– 08 The paper also maintains ... of capital and a depreciation of the currency—typical of currency crisis The final effect of the combination of higher wages and a financial crisis on the real exchange rate would depend on the ... Denmark, Latvia, Lithuania, Hungary, Poland, Romania, Sweden, and the United Kingdom See Soros 2010 for a different view Soros understands the European Crisis as a banking rather than a fiscal crisis...