This paper attempts to provide a perspective on real exchange rate developments following the inception of the EMS. The focus is on structural determinants of real exchange rates, notably the behavior of tradables and nontradable prices and productivity. It is found that changes in the relative...

After an in-depth review of the Stability and Growth Pact, the authors of this CEPS Policy Brief conclude that there is sufficient flexibility within the Pact to accommodate any unexpected drop in economic activity and has ample margin to finance structural reforms during transition to the new...

This CEPS Policy Brief examines the provisions for bail-in in the European Union – that is, the principle whereby any public measure to recapitalise a bank with insufficient prudential capital must be preceded by a write-down or conversion into equity of creditors’ claims – in state aid...

This paper reviews the causes of the ongoing crisis in the eurozone and the policies needed to restore stability in financial markets and reassure a bewildered public. Its main message is that the EU will not overcome the crisis until it has a comprehensive and convincing set of policies in place;...

This paper reviews the causes of the ongoing crisis in the eurozone and the policies needed to restore stability in financial markets and reassure a bewildered public. Its main message is that the EU will not overcome the crisis until it has a comprehensive and convincing set of policies in place;...

This essay discusses the endemic weaknesses of Italian industry in a historical as well as analytical perspective. The main conclusion is that these weaknesses may not be determined by some hereditary shortcomings of character and skill of our entrepreneurial class, but rather by the economic...

The massive financial instability of 2007-08 was, in the main, the result of lax monetary policy. Regulation compounded this error by allowing and encouraging excessive leverage and maturity transformation by banks. Innovation did contribute to reckless credit expansion and investments, but...