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Euro Area

After Greece: Saving EMU

Stephen G. Cecchetti | Posted 08.06.2016 | Business
Stephen G. Cecchetti

Euro-area leaders announced yet another agreement with Greece in mid-July. However, the survival of the euro area has never been about the fate of Greece. Instead, it is whether the Europeans will implement the reforms necessary to keep the euro area together.

The Euro Area's Debt Hangover

Stephen G. Cecchetti | Posted 05.18.2016 | Business
Stephen G. Cecchetti

The ongoing difficulties in Greece - combined with the ECB's dramatic actions to ward off deflation - are distracting attention from what may be the euro area's biggest and most pervasive problem: debt.

Financial Risks Rise Amid Uneven Global Economic Recovery

José Viñals | Posted 06.15.2015 | Business
José Viñals

Additional policy measures -- beyond monetary policies -- are vital to make a durable exit from the global financial crisis and to safeguard financial stability. Crisis legacies need to be addressed. The traction of monetary policies must be increased with complementary reforms and financial excesses need to be contained.

ECB Paddles Both Ways in the Rubicon

Stephen G. Cecchetti | Posted 04.11.2015 | Business
Stephen G. Cecchetti

On January 22, the ECB crossed the Rubicon twice -- but in opposite directions. In an effort to combat deflation and years of anemic growth, the central bank announced a sustained program of large-scale asset purchases.

The Slow Recovery Continues

Olivier Blanchard | Posted 09.23.2014 | Business
Olivier Blanchard

The recovery continues, but it remains weak, indeed a bit weaker than we forecast in April. We have revised our forecast for world growth in 2014 from 3.7 percent in April to 3.4 percent today. This headline number makes things look worse than they really are.

Debt in a Time of Protests

Nemat Shafik | Posted 12.16.2012 | Business
Nemat Shafik

As the world economy continues to struggle, people are taking to the streets by the thousands to protest painful cuts in public spending designed to reduce government debt and deficits. This fiscal fury is understandable.

The Euro: Bad Idea, Poorly Executed, Hard to Fix

David Backus | Posted 12.15.2012 | Business
David Backus

The euro crisis combines, in our view, a sovereign debt crisis and a banking crisis, with mutually adverse feedback between the two. But design flaws in the system magnified their impact and feedback.

Time Not on Our Side: Tough Decisions Needed to Strengthen Financial Stability

José Viñals | Posted 10.10.2012 | Business
José Viñals

The forces of financial and economic fragmentation have widened the divide between countries at the core and the "periphery" of the euro zone. Can this process of fragmentation be reversed?

The Solution Is More, Not Less Europe

Antonio Borges | Posted 09.18.2011 | Business
Antonio Borges

It is hard to hold the course in the middle of a storm, but European policymakers need to if they want European integration to succeed.