We analyze the similarities and the differences in the fragility of the European Monetary System (EMS) and the Eurozone … foreign exchange markets while in the Eurozone it was the absence of a lender of last resort in the long-term government bond … Eurozone the roles were reversed. The national central banks that became part of the Eurosystem were strengthened …

We analyze the similarities and the differences in the fragility of the European Monetary System (EMS) and the Eurozone … foreign exchange markets while in the Eurozone it was the absence of a lender of last resort in the long-term government bond … Eurozone the roles were reversed. The national central banks that became part of the Eurosystem were strengthened. …

This paper asserts that the contagion currently afflicting sovereign bond markets in the eurozone can only be stopped … if there is a central bank willing to be lender of last resort, i.e. willing to guarantee that the cash will always be … contagion in the eurozone's sovereign bond markets have not been stopped …