Don't expect too much from EZ fiscal union – and complete the unfinished integration of European capital markets!

Mathias Hoffmann, Bent E. Sørensen, 9 November 2012



The sovereign debt crisis apparently suggests that Eurozone economies should now move substantially closer towards fiscal union. Current policy discussions revolve much more around how such a fiscal union should be designed than whether fiscal union can solve Europe’s underlying problems of economic coherence. What can we expect from a fiscal union?

Topics: EU policies, International finance, Monetary policy
Tags: banking union, capital markets, Eurozone crisis, fiscal union, risk, Risk sharing

Do capital gains on international portfolios have risk sharing benefits? Evidence from Europe

Sebnem Kalemli-Ozcan, Bent E. Sørensen, 23 May 2012



A common currency and harmonised financial regulation has led to increased financial integration in Europe which, according to standard theory, should lead to increased risk sharing, i.e. income and consumption smoothing in the face of country-specific shocks.

Topics: Europe's nations and regions, Financial markets, International finance
Tags: Eurozone crisis, financial integration, international portfolios, Risk sharing

Incentive and insurance effects of tax financed unemployment insurance

Torben M. Andersen, 27 September 2010

Vox users can download CEPR Discussion Paper 8025 for free here. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

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Topics: Europe's nations and regions, Labour markets, Taxation, Welfare state and social Europe
Tags: flexicurity, incentives, Risk sharing, search, unemployment benefits

Financial globalisation has improved international risk sharing

Robert Flood, Akito Matsumoto, Nancy P. Marion, 12 January 2010



Sharing risk is basic to market economies. Many institutions, such as insurance companies and equity and derivatives markets, are designed to spread risk. Indications are that markets are pretty good at spreading risk within countries.

Topics: Global economy
Tags: consumption, financial globalisation, Risk sharing

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