Macrofinancial Stability and the Euro

My aim is to examine the implications of monetary union for macrofinancial stabilisation policies at national and area-wide levels. The boom-bust-crisis-recovery cycle that the euro area has experienced over its first two decades has revealed the costs of national and international institutional frameworks that proved inadequate to manage the policy challenges of this period. After the crisis, much has been done to remedy these policy shortfalls, even if the reform agenda is far from complete. National and area-wide policymakers should make use of the improved institutional architecture to do a better job in terms of ex-ante risk management and ex-post crisis management.