Policymaking in the Eurozone and the Core Vs. Perifphery Problem
AbstractI argue that the eurozoneÂ’s current problems are primarily structural: A weak central bank; the absence of fiscal coordination; fragmented bank supervision with individual countries having the ultimate responsibility for supporting banks but without the ability to print their own currency. At the same time, European elites of the core have been driven by very short-term objectives whereas the Greek and Irish governments have shown no appetite to represent their own citizens in negotiations. In the absence of any moves towards political integration and to avoid a probable disorderly exit, it is critical to formally establish an opt-out clause for exit from the eurozone and, in the meantime, rapidly prepare procedures for such an exit.
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Bibliographic InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 101112.
Length: 18 pages
Date of creation: May 2011
Date of revision:
Other versions of this item:
- Stergios Skaperdas, 2011. "Policymaking in the Eurozone and the Core vs Periphery Problem," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 12-18, 07.
- G01 - Financial Economics - - General - - - Financial Crises
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
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