What is the link between the financial cycle - financial booms, followed by busts - and the real economy? What is the direction of this link and how salient is this connection? This unique book examines these fundamental questions and offers a paramount contribution to the debate surrounding the...

pt. 1. The stability merits of the euro -- pt. 2. A case for rapid euro adoption? -- pt. 3. The euro area- a shelter? Euro assets- a safe haven? -- pt. 4. Lessons- from euro area divergences, and from the crisis -- pt. 5. Post-crisis business models of banks in CEE