EconPapers    
Economics at your fingertips  
 

A European perspective on overindebtedness

Nicolas Veron and Jeromin Zettelmeyer ()

Policy Contributions from Bruegel

Abstract: The euro-area crisis, which nearly destroyed Europe’s Economic and Monetary Union (EMU) in 2011-12, was a result of perverse incentives and inadequate institutions. The perverse incentives included excessive implicit national guarantees of domestic banks, and a lack of clarity on what would happen in case of sovereign debt distress, which was interpreted as an implicit guarantee of euro-area sovereigns by each other. Correspondingly, Europe had no institutions that could credibly...

Date: 2017-09
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.bruegel.org/wp-content/uploads/2017/09/PC-25-2017.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bre:polcon:22143

Access Statistics for this paper

More papers in Policy Contributions from Bruegel Contact information at EDIRC.
Bibliographic data for series maintained by Bruegel ().

 
Page updated 2021-06-11
Handle: RePEc:bre:polcon:22143