The euro is widely believed to be a currency without a sovereign state. To make the euro a stable currency, many commentators recommend a move to a federal fiscal Europe by issuing eurobonds or levying European taxes. By contrast, we argue in this paper that the EU and the euro area member...

To measure the size of the banking system, a country's banking assets divided by the country's gross domestic product (GDP) is commonly applied as a yardstick. But is the banking assets to GDP ratio an appropriate yardstick? This paper shows that comparing a country's banking sector only by...