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Eurozone Flaws: Uncovering the Holes in the Cheese

Francesco Passarelli () and Antonio Villafranca ()
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Antonio Villafranca: ISPI, Milan

Rivista di Politica Economica, 2014, issue 3, 127-152

Abstract: The paper describes the politico-economic context in which the crisis took place, presenting a theoretical framework able to capture the complex dynamics of the politico-economic bargains occurring between OCA countries in general and among Eurozone members in particular. We then proceed to review the rules EU policymakers adopted in their quest for an orderly conclusion to the crisis, taking stock of progress done towards deeper political and economic integration. We conclude by advancing a potential solution to make the Eurozone recovery more sustainable, all the while decreasing the likelihood and impact of future crises.

Keywords: EU economic governance; monetary policy; fiscal policy. (search for similar items in EconPapers)
JEL-codes: E61 F53 H63 H77 (search for similar items in EconPapers)
Date: 2014
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Handle: RePEc:rpo:ripoec:y:2014:i:3:p:127-152