Lessons for Monetary Policy from the Euro-Area Crisis

C.A.E. Goodhart

Journal of Macroeconomics, 2014, vol. 39, issue PB, 378-382

Abstract: The earlier 2007/2008 financial crisis generated the main lessons for monetary policy, notably that price stability does not necessarily guarantee financial stability. Nevertheless, the on-going Eurozone crisis has pointed to further lessons, notably that a single currency covering diverse states does need a Banking Union; and to problems of zero risk-weighting for sovereign debts. Without such a Banking Union, economic divergences between the Eurozone states have continued and look likely to persist.

Keywords: Price stability; Financial stability; Banking union; Zero lower-bound (search for similar items in EconPapers)
JEL-codes: E44 E52 F36 G01 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:39:y:2014:i:pb:p:378-382

DOI: 10.1016/j.jmacro.2013.08.014

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