To send content items to your account,
please confirm that you agree to abide by our usage policies.
If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.
Find out more about sending content to .
To send content items to your Kindle, first ensure firstname.lastname@example.org
is added to your Approved Personal Document E-mail List under your Personal Document Settings
on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part
of your Kindle email address below.
Find out more about sending to your Kindle.
Note you can select to send to either the @free.kindle.com or @kindle.com variations.
‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi.
‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
The financial crisis of 2007–10 has presented a number of key policy challenges for those concerned with the long-term stability of the euro area. It has shown that price stability as provided by the European Central Bank is not enough to guarantee financial stability, and exposed fault lines in governance and deficiencies in the architecture of the financial supervisory and regulatory framework. This book addresses these and other issues, including why the crisis affected some countries more than others, whether the euro is still attractive for new EU states, and what policy changes and structural reforms, both macro and micro, should be undertaken to ensure its future viability. Written by a team of leading academic and central bank economists, the book also includes chapters on the cross-country incidence of the crisis, the Irish crisis and ECB monetary policy during the crisis, and studies on Spain, the Baltics, Slovakia and Slovenia.
This volume brings together the papers and panel contributions presented at the conference on ‘The Euro Area and the Financial Crisis’, held in Bratislava from 6 to 8 September 2010. The conference was hosted by the National Bank of Slovakia and jointly organised by the National Bank of Slovakia, Heriot--Watt University in Edinburgh and Comenius University in Bratislava. The event was characterised by intensive discussions between central bankers, academics and policy-makers from all over Europe, which contributed directly and indirectly to the authors’ revisions of their papers. The basic question was: What are the implications of the financial crisis and the great recession for the future of the euro area?
The book begins in Chapter 2 with the keynote contribution by Governor Athanasios Orphanides on the issues surrounding financial stability in Europe. Part I addresses the experience of the crisis. Thorvardur Ólafsson and Thórarinn Pétursson try in Chapter 3 to identify the factors that caused the depth and duration of the crisis to be larger in different countries. Philip Lane in Chapter 4 focuses on the Irish case. Angel Gavilán, Pablo Hernández de Cos, Juan F. Jimeno and Juan A. Rojas in Chapter 5 examine the Spanish case. Aurelijus Dabušinskas and Martti Randveer in Chapter 6 consider the varying experiences of the Baltic countries. Part II considers the issue of accession to the euro area by countries in Central, Eastern and Southeastern Europe (CESEE). Biswajit Banerjee, Damjan Kozamernik and L’udovít Ódor in Chapter 7 analyse the different strategies for entry to the euro used by Slovakia and Slovenia. Miroslav Beblavý in Chapter 8 investigates whether euro entry was associated with significant rises in prices (especially for non-tradable goods and services) in Slovakia. And in the first panel contributions Governor Ewald Nowotny in Chapter 9 and Zdeněk Tůma, together with David Vávra, discuss in Chapter 10 whether and how CESEE countries should accede to the euro. Part III looks at the future of the euro area. Francesco Giavazzi and Luigi Spaventa in Chapter 11 argue that much more attention needs to be paid to current account deficits within the European Monetary Union (EMU). Daniele Franco and Stefania Zotteri in Chapter 12 consider the role that national fiscal rules could play in avoiding future problems. Thomas F. Huertas in Chapter 13 discusses mechanisms for ‘bail-in’ as an alternative to future bail-outs of financial institutions. Laurent Clerc and Benoît Mojon in Chapter 14 review the conduct of monetary policy in the euro area since the inception of the euro and the challenges that the Eurosystem has faced since the financial crisis. Boris Cournède and Diego Moccero in Chapter 15 assess the contribution that a price-level (as opposed to an inflation) target could make to the operation and performance of monetary policy. This is followed by contributions by Wendy Carlin, Vítor Gaspar, Stefan Gerlach and Jacques Mélitz to the second panel (Chapters 16--19), on how to restore confidence in the euro project.