The crisis management and deposit insurance (CMDI) framework in the euro area requires a reset. Currently the framework is far more likely to manufacture a crisis rather than enable the authorities to manage one. Specifically, the current framework is far more likely to trigger the doom loop...

To complete banking union, there should be a single European deposit insurance scheme (EDIS) alongside the single supervisor and the single resolution authority. This would ensure uniformity across the Eurozone and facilitate the removal of barriers to the mobility of liquidity and capital...

In the economy expectations exercise enormous effects. Indeed, in finance prices and yields predominantly reflect current expectations about future cash flows and future interest rates. Change those expectations, prices and yields change as well. Change expectations radically enough, the change...