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We argue that the various proposals aimed at stabilizing the Eurozone using financial engineering do not eliminate the … amount of financial engineering can stabilize an otherwise unstable system. The real stabilization of the Eurozone entails … two mechanisms. The first is the willingness of the European Central Bank (ECB) to provide liquidity in the Eurozone …
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Political debates over the fiscal framework of the European Monetary Union have focused on two issues, dealing with asymmetric shocks and maintaining a high degree of fiscal discipline. After reviewing the development of the EMU fiscal framework, we argue that transfers dealing with asymmetric...
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