Jean Pisani-Ferry and André Sapir believe that the euro has proved attractive as a fair-weather currency for countries … succeed as a stormy-weather currency. The authors already detect, howevever, that the crisis shows the euro-area governance …

The single currency was expected to make balance of payments irrelevant between the euro-area member states. This … benign view has been challenged by recent developments, especially as imbalances between euro-area central banks have widened … qualify as 'sudden stops'. Euro-area sudden-stop episodes were clustered in three periods: the global financial crisis, a …

definition of price stability at a time of deflationary pressures. The euro's exchange rate has not been greatly impacted by the … recent currency war; the euro continues to be overvalued, but less than before. …

The search for solutions to the euro crisis is based on a partial diagnosis that overemphasises the lack of enforcement … of existing fiscal rules. Europe's leaders should rather address the euro area's inherent weaknesses revealed by the … crisis. At the core of euro-area vulnerability is an impossible trinity of strict no-monetary financing, bank …

refinancing (LTRO), there has been speculation that all three have de facto embarked on 'quantitative easing'. However, major … mitigated funding needs and reduced interbank stress, and has had a significant impact on sovereign bond yields in southern euro … particularly in the southern euro area. Underlying structural problems relating to banks, the macroeconomic adjustment and the euro …

, business cycles are not yet well synchronized with the euro area’s business cycle, and risk-sharing mechanisms may not provide …