Fragmentation risk in the euro area: no easy way out for the European Central Bank
The ECB should design a specific tool that will accompany interest rate hikes to neutralise the risk of fragmentation directly for countries facing it
This paper was prepared for the European Parliament’s Committee on Economic and Monetary Affairs (ECON) as an input to the Monetary Dialogue of 20 June 2022 between ECON and the President of the European Central Bank. The original paper is available on the European Parliament’s webpage, as part of a series of papers on “10 years after whatever it takes: fragmentation risk in the current context”. Copyright remains with the European Parliament at all times.