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.

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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)