According to the literature, two main factors sparked the European debt crisis: (1) macroeconomic imbalances originated by national governments and (2) institutional design flaws leading to feeble response by European authorities; still, economists disagree on the factors' strength. Using Bai...

While the media and some professional blogs propose austerity policies because the European debt crisis is due to the misuse of public finances by some national authorities, this paper suggests that the existence of national conflicts within the ECB’s governing bodies is the main cause of the...

According to the literature, two main factors sparked the European debt crisis: (1) macroeconomic imbalances originated by national governments and (2) institutional design flaws leading to feeble response by European authorities; still, economists disagree on the factors' strength. Using Bai...