In this analytical policy brief, CEPS Director Daniel Gros explores whether there is a fundamental difference between a formal sovereign default with a haircut and debt monetization, which reduces the purchasing power for investors by the same amount. He argues that there is indeed a difference...

The turmoil affecting southern euro area countries (notably Greece) has ushered in the second phase of the financial crisis: that of sovereign default. It is now time to look for a new framework that allows the Union to deal with the failure of one of its members. In this new CEPS Policy Brief,...

What policy objective should a common central bank in a heterogeneous monetary union pursue? Should it base its decisions on the EU-wide average of inflation and growth or should it instead focus on (appropriately weighted) national welfare losses based on national rates of inflation and growth?...