IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article


Listed author(s):
  • Lars Calmfors
  • Giancarlo Corsetti
  • John Hassler
  • Gilles Saint-Paul
  • Hans-Werner Sinn
  • Jan-Egbert Sturm
  • Ákos Valentinyi
  • Xavier Vives

Chapter 1 of the report discusses the immediate macro economic outlook for the global economy. Chapter 2 argues that the euro crisis was fundamentally triggered by major macroeconomic imbalances within the euro area. These imbalances hindered capital flows, while uncertainty surrounding the repayment of government debt and the mid-term economic prospects of individual regions triggered outright capital flight. With European monetary authorities injecting ample liquidity in favour of the banking system, massive capital flight has resulted in huge balance- of-payments imbalances. Risk premiums on government bonds have also risen to levels that are unsustainable for some countries. Chapter 3 analyses Europe's financial architecture. It highlights the need for proper banking regulation and a well-defined framework for crisis resolution in order to create a more stable financial system able to cope with future problems of a similar kind. Chapters 4 and 5 profile two very different countries, Sweden and Hungary, and highlight the lessons that can be learnt from current and past crises. Whereas many European countries may envy Sweden's fiscal discipline, recent economic policies in Hungary seem to bode ill for the country's future. Finally, Chapter 6 looks at the longterm crisis of climate change and argues that the cost of both emissions and abatement should be equalised across technologies, industries and regions.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by CESifo Group Munich in its journal EEAG Report on the European Economy.

Volume (Year): (2012)
Issue (Month): (February)
Pages: 08-16

in new window

Handle: RePEc:ces:eeagre:v::y:2012:i::p:08-16
Contact details of provider: Postal:
Poschingerstrasse 5, 81679 Munich

Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ces:eeagre:v::y:2012:i::p:08-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.