This report presents a long-term view of the evolution of financing of EU non-financial corporations (NFCs) in recent decades. It finds a decline in NFC leverage since at least 2008, and across countries, size categories and industries. It also documents a growing role of non-bank financial...

We analyze causes and consequences of a monetary unification among countries with different institutional quality. Countries with stronger institutions choose a more productive policy, resulting in a stronger currency and lower taxes. Governments under weaker institutions prefer more spending...

We analyze the political economy causes and consequences of a monetary unification among countries with different institutional quality. Before a common currency, countries with stronger institutions have more efficient public spending and lower taxes, leading to better productive incentives and...