Global financial integration and the linkages between the financial and the real sides of economies are sources of huge policy challenges. A newly released book sheds new light on those multiple challenges.
Banks -- and the loans they provided in the run-up to the crisis -- are at the heart of Europe's problems today. Policies to promote deeper integration of Europe's banks should be part of the solution.
The crisis has forced economists and policy makers to go back to their drawing boards. Where did they go wrong, and what implications does the crisis have for both macroeconomic theory and macroeconomic policy making?