The ECB's one size monetary policy is unlikely to fit all euro area members at all times, which raises the question of … within the euro area has been steadily decreasing prior to the recent financial crisis. Current stress levels are not only … lower today than in the late 1990s, they are also in line with what is commonly observed among U.S. states or pre-euro …

We study the macroeconomic consequences of the money market tensions associated with the financial crisis in the euro … area. In a structural VAR, we identify a liquidity shock rooted in the interbank market and use its impulse response … persistent fall in investment. The shock can account for one third of the observed, large fall in euro area aggregate investment …