The key lesson of the first twenty five years of the euro is that the ECB is embedded in an incomplete and flawed institutional context. Its role has increasingly emerged as an integration agency in the face of existential threats to the euro. The way the world is going to change will put the...

This paper starts from the observation that two groups of European countries, neither of which could use the exchange rate as an adjustment instrument, experienced a sudden stop after the outbreak of the global financial crisis. The first group comprises Greece, Ireland, Italy, Portugal and...

The eurozone countries are currently sitting on an aggregate exposure to Greece exceeding €300 billion. If the country were to exit the eurozone, it would certainly not be able to service its debt in the short run when the exchange rate overshoots. Over the longer run, however, the exchange...