We analyze the role of labor mobility in cushioning labor demand shocks in the Euro Area. We find that foreign born … the regional level. Additionally, we compare Euro Area mobility to that of another currency union, the US. We find that … the population to employment elasticity estimated for foreign-born persons is similar in the Euro Area and the US, while …

across European countries. We also document the labor market flows through which such a positive reallocation took place …

As a result of the Balassa effect relative prices change rapidly between and within the euro countries. Thus it is … no country face a deflation. This minimum aggeragate inflation rate is 0.94% in the euro-11 countries and 1.13% in an …

, which is closer to European than the US is in its labor market and fiscal institutions. Europe's (and to some extent Canada … an alternative strategy based on a relaxed stability pact, further strictures against central EU borrowing, labor market …

banks, because the Euro will have to be bought by these banks in exchange for assets which have been accumulated in the …

While the ECB helped mitigate the euro crisis in the aftermath of Lehman, it has stretched its monetary mandate and …