Sovereign default risk and banks in Europe’s monetary union
Uhlig, Harald. EZ banks are more exposed to their own nation’s government bonds than ever. This column argues that Eurozone members can now afford to tell their banks to diversify, but pressure from Germany, Austria, France and the ECB might be necessary. Defusing the pernicious entanglement between the Eurozone’s weak banks and weak sovereigns would reduce […]
Political challenges of the macroprudential agenda
Chwieroth, Jeffrey, Danielsson, Jon. Central banks frequently lead the macroprudential policy implementation. The hope is that their credibility in conquering inflation might rub off on macroprudential policy. This column argues the opposite. The fuzziness of the macroprudential agenda and the interplay of political pressures may undermine monetary policy. Πηγή: Voxeu πλήρες κείμενο