‘Grexit’: Who would pay for it?
Alcidi, Cinzia, Giovannini, Alessandro & Gros, Daniel. The eurozone countries are currently sitting on an aggregate exposure to Greece exceeding €300 billion. If the country were to exit the eurozone, it would certainly not be able to service its debt in the short run when the exchange rate overshoots. Over the longer run, however, the exchange […]
Is the Euro Ending or Beginning?
Pisani-Ferry, Jean. When the architects of the euro started drawing up plans for its creation in the late 1980’s, economists warned them that a viable monetary union required more than an independent central bank and a framework for budgetary discipline. Study after study emphasized asymmetries within the future common-currency area, the possible inadequacy of a […]