Policy insights

Policy Insights

Policy Insight 91: Reconciling risk sharing with market discipline: A constructive approach to euro area reform

The euro area continues to suffer from critical weaknesses that are the result of a poorly designed fiscal and financial architecture, but its members are divided on how to address the problems. This paper proposes six reforms which, if delivered as a package, would improve the euro area?s financial stability, political cohesion, and potential for delivering prosperity to its citizens, all while addressing the priorities and concerns of participating countries.

Citation

Weder di Mauro, B, J Zettelmeyer, H Rey, N Véron, P Martin, F Pisani, C Fuest, P Gourinchas, M Fratzscher, E Farhi, H Enderlein, M Brunnermeier and A Bénassy-Quéré (eds)