Banking union: Ireland vs Nevada, an illustration of the importance of an integrated banking system

Daniel Gros 27 November 2012

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The Eurozone crisis has demonstrated how an insolvent sovereign can destroy a national banking system, Greece, but also how an insolvent banking system can almost sink the sovereign – Ireland and Spain (Wyplosz 2012).

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Topics:  EU institutions EU policies

Tags:  ECB, Ireland, fiscal union, banking union, Nevada

Club Med and the Sun Belt: Lessons from adjustment within a monetary union

Uri Dadush, Zaahira Wyne, Shimelse Ali 24 July 2012

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The experiences of a few US states in weathering the ongoing economic turmoil could provide some insight into the Eurozone’s struggles. In particular, Florida, Arizona, and Nevada along the US Sun Belt saw a big housing bubble and subsequent bust, much like Greece, Ireland, and Spain along Europe’s periphery, a group we call ‘Club Med’. Both groups, each part of a monetary union, continue to suffer severely from the after effects of the crisis, but the Sun Belt states have recovered earlier and have not faced the trauma of a sovereign debt crisis.

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Topics:  Europe's nations and regions Global economy Labour markets Monetary policy

Tags:  Spain, monetary union, Ireland, housing bubble, Greece, Eurozone crisis, Florida, Arizona, Nevada