This paper reviews the performance of the euro area since the euro's launch 20 years ago. It argues that the euro … crisis has exposed existential flaws in the euro regime. Intra-area divergences and the corresponding buildup of imbalances … unemployment continue to plague euro crisis countries. Its huge current account surplus highlights that the euro currency union …

exposure was such that it did not result in any abnormal fluctuations in bank values at the height of the crisis. When we … measure the sensitivity of bank returns to changes in the Greek CDS spread in an effort to measure banks' exposure to the … crisis, we find that changes in the Greek CDS spread provide no additional explanatory power for bank returns beyond what a U …

depressed euro that boosted German extra-area exports. But the crisis that started in Euroland's so-called periphery has … meanwhile reached the core. With pro-euro sentiments dwindling fast across the European Union (EU), the future of the euro … remains uncertain no matter what European Central Bank President Mario Draghi may promise. Germany's "safe haven" status may …

Macroeconomic adjustment in the euro area periphery was more recessionary than pre-crisis imbalances would have … warranted. To make this claim, this paper uses a Propensity Score Matching Model to produce counterfactuals for the Eurozone … crisis countries (Greece, Portugal, Ireland, Cyprus, Spain) based on over 200 past macroeconomic adjustment episodes between …

Macroeconomic adjustment in the euro area periphery was more recessionary than pre-crisis imbalances would have … warranted. To make this claim, this paper uses a Propensity Score Matching Model to produce counterfactuals for the Eurozone … crisis countries (Greece, Portugal, Ireland, Cyprus, Spain) based on over 200 past macroeconomic adjustment episodes between …

This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that … transfer/no bailout monetary union, and a “clean,” independent central bank. Misdiagnosis and the wrongly prescribed medication … the euro's survival. The crisis in Euroland poses a global “too big to fail” threat, and presents a moral hazard of …

institutional deficiencies share responsibility for the euro's failure, the bank has generally done "too little, too late" with … regard to managing the euro crisis, preventing protracted stagnation, and containing deflation threats. The bank remains … ECB needs a "Euro Treasury" partner to overcome the euro regime’s most serious flaw: the divorce between central bank and …

The European Central Bank (ECB) took many measures to combat the eurozone's rolling financial crisis. For providing … desperately scarce dollars to eurozone banks, the ECB relied on the U.S. Federal Reserve. Using a novel econometric framework, we … October 2009 and September 2012, the most intense phase of the eurozone crisis. Dollar liquidity clearly reduced stress in …

This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that … transfer / no bailout monetary union, and a "clean", independent central bank. Misdiagnosis and the wrongly prescribed … threaten the euro's survival. The crisis in Euroland poses a global "too big to fail" threat, and presents a moral hazard of …