This paper argues that the Eurozone crisis stems from a risk management failure in the Eurosystem's design, and that … applying insurance theory is useful. We model risk neutral agents choosing portfolios of government bonds of n countries in a …

whether inflation uncertainty has diminished following the introduction of the Euro in Europe. Consumers' responses to the …

and thus on the extent of risk sharing across member states. The literature to date has focused on financial and credit … markets as well as on transfer schemes as channels of risk sharing. In this paper, we show how the standard approach to … quantify risk sharing can be extended to account for migration as an additional channel of cross-country risk sharing. In …

We examine the relationship between private bank deposits and macro/fiscal risk in the euro area. We test three … hypotheses: First, private bank deposits relative to Germany are determined by macro/fiscal risk factors. Second, this … relationship is time-varying. Third, time-variation is driven by the level of macro/fiscal risk. Our findings validate all three …

and turns of unemployment rates in Europe and elsewhere. …