Financial Stability Without Central Banks

A ‘free’ banking system without a central bank provides incentives for banks to act with restraint. Their lending policies are, in effect, tied to …

Book review: ‘The euro: how a common currency threatens the future of Europe’ by Joseph E. Stiglitz

Since the onset of the euro zone crisis, two schools of thought have emerged, offering different diagnoses of the single-currency area’s woes. The first …

Le Pen’s plan for France’s euro exit

“As Victor Hugo once proclaimed, we have not yet done with being French”, declared Marine le Pen, launching her presidential campaign in Lyon on …

Eurexit – is leaving the Eurozone an option?

The upcoming months will be decisive for the future of the Euro. The French election, to be held on April 23rd (first round, followed …

Inflation and the ECB: a political problem

Mario Draghi´s latest comments expressing his support for continuing the European Central Bank´s Quantitative Easing drew much controversy from northern Eurozone countries, especially Germany, …

Would a Return to a National Currency without Institutions Work?

Part 3 of our Greek economy series. For Part 1 and Part 2 as well.
 
Some economists like Stiglitz claim that Greece should give …

Greece – the conundrum of currency and institutions

Part 2 of our Greek economy series. For Part 1, please click here.
 
The Institutional Problem Revealed through Global Indices
 
One could arguably …

Greece – the conundrum of currency and institutions

(Part 1)
 
It appears to many that Greece is a lost cause and a country that can maybe only survive outside the euro. …

Give the people what they want

In a previous post, entitled “The changing narrative of the Euro crisis”, Diego Zuluaga argued that, while Eurozone reform was justified, European policymakers “should …

The changing narrative of the euro crisis

Diego Zuluaga // 05.10.2016
When the eurozone debt crisis broke out in late 2009, there was considerable agreement among policymakers that budgetary prudence and …