CRISIS RESOLUTION MECHANISMS AND BOND PURCHASES AS A POSSIBLE SOLUTION TO THE DEBT CRISIS IN THE EURO AREA

This paper deals with the creation and functions of so called eurozone crisis resolution mechanisms, which include European Financial Stabilization Mechanism, European Financial Stability Facility, European Stability Mechanism, and also with the unorthodox steps of European Central Bank in the form of purchases of government bonds of some member states. The aim of this paper is to outline some of the problems and risks associated with the activation of these measures whose purpose is to solve debt problems and ensure the credibility of the eurozone. In conclusion the author's own opinion on the effectiveness of these measures is given. The author uses methods of research and analysis.