The position taken by politicians and important pressure groups in Germany concerning EMU will depend to a large extent on its labour market implications - and thus on the (perceived) impact of exchange rate variability on employment and unemployment. Most economists would assume this impact to...

Despite the experience of the ongoing sovereign debt crisis, European banks continue to hold large amounts of bonds from their home governments. This ties the fates of the sovereign and the banks together, leading to the disruptive self-reinforcing feedback loops that brought the euro area to...