In a few days, pending some last-minute diplomatic conflict between the UK and the European Commission, the ECB will begin an asset-quality review of European banks. This is supposed to be the entry point to the supervisory role of the ECB in the context of the Single Supervisory Mechanism (SSM), the first of three pillars of the planned banking union.
Banking union for Europe – where do we stand?
Thorsten Beck, 23 October 2013
Redesigning the ECB with regional rather than national central banks
Michael Burda, 15 July 2013
The monetary union was always a grand gamble. It established the ECB for an immense region that itself was not a state -- a trans-European institution with governmental duties that does not represent any government in particular.
Club Med and the Sun Belt: Lessons from adjustment within a monetary union
Uri Dadush, Zaahira Wyne, Shimelse Ali, 24 July 2012
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’.
Does fiscal stimulus work in a monetary union? Evidence from US regions
Emi Nakamura, Jón Steinsson, 2 October 2011
A major question facing many governments in the rich world today is whether we should try to stimulate the economy by increasing government spending. The professional opinion of economists regarding this question is sharply divided.
A fiscal union for the euro: Some lessons from history
Michael Bordo, Lars Jonung, Agnieszka Markiewicz, 21 September 2011
The current sovereign debt crisis in Europe, now threatening the existence of the euro, has revealed major faults in the design of the fiscal framework of the Eurozone. It has inspired a heated debate reflected in a steady flow of proposals concerning the proper rules and institutions for fiscal policymaking in the EU.
How to prick local housing bubbles in a monetary union: regulation and countercyclical taxes
Alan Ahearne, Juan Delgado, Jakob von Weizsäcker, 27 June 2008
Academics and central bankers across the world are again engaged in an intensive debate about how central banks should react to substantial rises in asset prices in the wake of recent booms and busts in housing markets in many countries. Until recently, there seems to have been a consensus that monetary policy should not be aggressively tightened in an attempt to prick a house price bubble.
Regional monetary integration
Peter B. Kenen, Ellen E. Meade, 7 February 2008
A full-fledged monetary union replaces its members’ national currencies with a single currency (the euro in the European case) and establishes a single central bank (such as the ECB) to pursue a single monetary policy for the whole union. If its members’ economies experience large idiosyncratic shocks, the union’s monetary policy will not always be optimal for each member.
Borders, language, and the future of European integration: insights from the 19th century Habsburg Empire
Nikolaus Wolf, Max-Stephan Schulze, 7 July 2007
The world is not flat. Distance is not dead. In short, borders matter.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013
Holmes, McGrattan, Prescott
Beck, De Haas, Ongena
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- What’s wrong with Europe?Baldini, Manasse
- How the EZ crisis is permanently changing EU institutionsMicossi