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Reengineering EMU for an Uncertain World

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  • Angel Ubide

    (Peterson Institute for International Economics)

Abstract

The euro area crisis has probably passed the acute phase, but it has entered a chronic and unstable phase of fractured credit markets, too high funding costs, very weak growth, and dim expectations. More austerity and reforms at the national level alone will not be enough to stabilize the euro area. To ensure its sustainability, the euro area needs to be reengineered to restore political solidarity, end the debate on default and exit, strengthen its institutions and launch eurobonds, and refocus cyclical policies towards stabilizing the business cycle. Without these steps, the euro will never be a credible and sustainable monetary union.

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  • Angel Ubide, 2013. "Reengineering EMU for an Uncertain World," Policy Briefs PB13-4, Peterson Institute for International Economics.
    • Handle: RePEc:iie:pbrief:pb13-4
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    File URL: https://www.piie.com/publications/policy-briefs/reengineering-emu-uncertain-world
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    References listed on IDEAS

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    Cited by:

    1. Daniele Schiliro, 2014. "Changes in Eurozone Governance after the Crisis and the Issue of Growth," International Journal of Social Science Studies, Redfame publishing, vol. 2(2), pages 110-119, April.
    2. Angel Ubide, 2014. "Is the European Central Bank Failing Its Price Stability Mandate?," Policy Briefs PB14-5, Peterson Institute for International Economics.
    3. Angel Ubide, 2013. "How to Form a More Perfect European Banking Union," Policy Briefs PB13-23, Peterson Institute for International Economics.

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