Philip R. Lane, Sunday, August 23, 2015 - 00:00

This paper examines the cyclical behaviour of country-level macro-financial variables under EMU. Monetary union strengthened the covariation pattern between the output cycle and the financial cycle, while macro-financial policies at national and area-wide levels were insufficiently counter-cyclical during the 2003-2007 boom period. We critically examine the policy reform agenda required to improve macro-financial stability.


Kick-off Conference of the ADEMU project (A Dynamic Economic And Monetary Union). Hosted by University of Cambridge, October 8-9, 2015. More information and registration:

Paul De Grauwe, Monday, September 7, 2015 - 00:00

Economists were early critics of the design of the Eurozone, though many of their warnings went unheeded. This column discusses some fundamental design flaws, and how they have contributed to recent crises. National booms and busts lead to large external imbalances, and without individual lenders of last resort – national central banks – these cycles lead some members to experience liquidity crises that degenerated into solvency crises. One credible solution to these design failures is the formation of a political union, however member states are unlikely to find this appealing.

Carmen M Reinhart, Thursday, July 9, 2015 - 00:00

Contrary to the intent of the designers of what was to be an irreversible currency union, Greece may well exit the Eurozone. This column argues that default does not inevitably trigger the introduction of a new currency (or the re-activation of an old one). However, if ‘de-euroisation’ is the end game, then a forcible (or compulsory) currency conversion is likely to be a central part of that process, along with more broad-based capital controls. 

Reuven Glick, Andrew K Rose, Monday, June 15, 2015 - 00:00

The Economic and Monetary Union in Europe has recently been the source of a lot of pain. Its economic benefits often seem a lot harder to measure.  This column reconsiders earlier opinions on the trade effects of currency unions using the latest data and methodologies. It suggests the euro has at least a mildly stimulating effect on exports.  However, the switches and reversals across methodologies do not make allowances for any bold statements.

Michal Kobielarz, Burak Uras, Sylvester Eijffinger, Thursday, March 12, 2015 - 00:00

Paul De Grauwe, Monday, July 7, 2014 - 00:00

There has been a stark contrast between the experiences of Spain and the UK since the Global Crisis. This column argues that although the ECB’s Outright Monetary Transactions policy has been instrumental in reducing Spanish government bond yields, it has not made the Spanish fiscal position sustainable. Although the UK has implemented less austerity than Spain since the start of the crisis, a large currency depreciation has helped to reduce its debt-to-GDP ratio

Marco Buti, Maria Demertzis, João Nogueira Martins, Sunday, March 30, 2014 - 00:00

Although progress has been made on resolving the Eurozone crisis – vulnerable countries have reduced their current-account deficits and implemented some reforms – more still needs to be done. This column argues for a ‘consistent trinity’ of policies: structural reforms within countries, more symmetric macroeconomic adjustment across countries, and a banking union for the Eurozone.

Espen Henriksen, Finn Kydland, Roman Šustek, Wednesday, October 2, 2013 - 00:00

The monetary policy for Eurozone members is one-size-fits-all in an economic area rife with economic differences. Does this really make a difference? This column argues that even if each EZ member state had a fully independent monetary authority, monetary policies would likely still appear highly synchronised across EZ members.

Daniel Gros, Wednesday, August 24, 2011 - 00:00

Eurobonds are being touted as the silver bullet to resolve the Eurozone crisis. This column argues that the Eurobonds proposal fails on legal, political, and economic grounds. It says that, whatever the variant, Eurobonds only make sense in a political union—and given the vast differences in national political systems and their quality of governance, any political union created on paper will not work in practice.

Philip R. Lane, Monday, March 14, 2011 - 00:00

CEPR DP8287 seeks to explain the origins of the Irish crisis and provide an interim assessment of the Irish government’s management of the crisis. Finally, it evaluates the lessons from Ireland for the macroeconomics of monetary unions.

Francesco Paolo Mongelli, Saturday, May 1, 2010 - 00:00

CEPR Policy Insight No. 47 argues that the benefits of a monetary union develop gradually over time and require policymakers to seize opportunities and perseverance in the face of adversity.

Francesco Paolo Mongelli, Saturday, May 1, 2010 - 00:00

Why would countries share a single currency? This column introduces a new CEPR Policy Insight and argues that some aspects are missing in the current debate on the merits of the EMU. Benefiting from monetary union is a matter of time, perseverance, and seizing opportunities.

Mathias Hoffmann, Saturday, March 20, 2010 - 00:00

If a European Monetary Fund does happen, how would it work? This column proposes a European Sovereign Insurance Scheme to sell bond insurance on EMU members' sovereign debt. In good times the insurance fees would allow the EMF to build up a capital cushion. In bad times, the EMF could use these funds to facilitate an orderly unwinding of the default – while imposing tough conditions.

Francesco Paolo Mongelli, Thursday, March 11, 2010 - 00:00

This new Policy Insight asks why countries would share a single currency, and addresses some aspects missing from the current debate on the benefits of the euro area.

Francesco Paolo Mongelli, Thursday, March 11, 2010 - 00:00

Why would countries share a single currency? This column introduces a new CEPR Policy Insight and argues that some aspects are missing in the current debate on the merits of the EMU. Benefiting from monetary union is a matter of time, perseverance, and seizing opportunities.

Roel Beetsma, Massimo Giuliodori, Friday, November 27, 2009 - 00:00

Currency unions strip national governments of a macroeconomic policy instrument. What do they get in return? This column says the European Economic and Monetary Union has eliminated incentives for competitive devaluations and enhanced inflation credibility. But monetary union may necessitate fiscal coordination and discipline.

Marco Buti, Vitor Gaspar, Wednesday, December 24, 2008 - 00:00

This column looks back at the first ten years of the euro, from the uncertainty surrounding its adoption to the one caused by the current crisis. In between, the euro proved a resounding success. It is worth remembering the magnitude of the original challenge in order to use the crisis as an opportunity to strengthen European governance.

Nikolaus Wolf, Thursday, May 29, 2008 - 00:00

Prior to 1914, Europe was economically integrated across political borders. The “second Thirty Year War” (1914-1945) put up barriers that post-war European integration has been undoing since the 1950s, returning Europe to a familiar state of economic affairs.

Michael Bordo, Harold James, Friday, April 4, 2008 - 00:00

The euro may surpass the dollar in coming decades to become the leading international currency. This column summarises four major challenges that the euro must survive for that to come true.


CEPR Policy Research