European integration has been a unique process from the start. European agreements – both large and small – have traditionally been built on ambiguity. Resolving these uncertainties ex ante has been deemed politically impossible, but all the parties believed that they would be resolved ex post in good faith.
Europe’s macro mess: Dysfunctional diversity that gets the job done
Charles Wyplosz, 20 March 2010
How Europe should harness market forces to deal with sovereign credit risk
Mathias Hoffmann, 20 March 2010
The sovereign debt crisis has revealed the lack of a mechanism for an orderly unwinding of fiscal imbalances and default in the Eurozone. Markets expect that the big EMU countries will eventually have to bail out Greece to avoid contagion to other, bigger countries and to defuse systemic risk for their own banking sectors. There is wide agreement that such a mechanism is urgently needed.
In the European Monetary Fund proposal, a chance to get the IMF right
Kati Suominen, 17 March 2010
Whatever its merits for rescuing European nations mired in crisis, the German finance minister’s 7 March proposal for a European Monetary Fund provides an opportunity for Europe and the US to get the future of the IMF right.
How to deal with sovereign default in Europe: Towards a Euro(pean) Monetary Fund
Daniel Gros, Thomas Mayer, 15 March 2010
Big financial crises are usually followed by pressure on public debt and often by sovereign default (Rogoff and Reinhart 2009). Europe, or rather the Eurozone, was caught totally unprepared for this second phase of the crisis.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford