The Bank of England, the Federal Reserve (Fed) and the European Central Bank (ECB) have responded to the crisis with exceptional initiatives resulting in a…

The euro crisis and subsequent policy responses have challenged the assumptions underpinning the euro-area's governance, and the relationship between the European Union's euro and non-euro countries.…

This Working Paper sheds light on the link between sovereign and banking risk in the euro zone. It provides an empirical analysis of the impact of…

This Policy Contribution reviews the major challenges faced by the euro area, and discusses recent initiatives and the way forward. Some implications are drawn out for Latvia’s euro accession, which is likely to be beneficial on balance.

We analyse corporate balance sheet adjustment episodes in Germany and Japan, as well as a sample of 30 countries, using national account data. A panel…

The euro area faces a double challenge: debt overhang and the need for price adjustment. This paper reviews the debt challenges in the household and…

Following the summit on the fate of the euro area on December 9, and this after a long series of summits in 2011, we should expect a large number of further summits in 2012. Indeed, the euro area faces severe challenges, with a break-up of the monetary union now being openly discussed.

Credit rating agencies (CRAs) have not consistently met the expectations placed on them by investors and policymakers. It is difficult, however, to improve the quality…

This policy brief argues that the euro area's shortcomings have become abundantly clear. It was set up without powers of strict surveillance over macroeconomic imbalances,…

This report evaluates International Monetary Fund surveillance of the euro area in the years before the financial crisis and during 2008-10.