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Avoiding Another Crisis in the Euro Area: Public and Private Imbalances and National Policy Responses.
- Source :
-
Journal of European Integration . Nov2015, Vol. 37 Issue 7, p787-801. 15p. - Publication Year :
- 2015
-
Abstract
- Early critics of the euro’s design pointed to the disruptive potential — both political and economic — of country-specific shocks in a monetary union that is a far cry from an optimal currency area. The euro crisis has confirmed the risks associated with a ‘one-size-fits-all’ monetary policy, decentralized financial supervision, and inadequate fiscal backstops. This article examines how the active use of national fiscal policies and macroprudential policies can mitigate these risks. Cross-border coordination of macroprudential policies is essential to ensure their effectiveness. In addition, area-wide reforms are necessary including a more complete banking union with a well-funded common backstop. [ABSTRACT FROM AUTHOR]
- Subjects :
- *MONETARY unions
*FINANCIAL crises
*FISCAL policy
*MONETARY policy
Subjects
Details
- Language :
- English
- ISSN :
- 07036337
- Volume :
- 37
- Issue :
- 7
- Database :
- Academic Search Index
- Journal :
- Journal of European Integration
- Publication Type :
- Academic Journal
- Accession number :
- 110591546
- Full Text :
- https://doi.org/10.1080/07036337.2015.1079374