Along time the European Union (EU) has been pointed as the most succeeded example of regional integration. Now, this example has been cruelly shaken by the EZ (Euro Zone) crisis, originating increasing doubts about the integration process. It is evident that the proposed solutions for attacking...

In contrast to Robert Mundell's Optimum Currency Area theory and his recommendation of forming a monetary union, the economic fundamentals of Euro area member countries have not harmonized. The opposite holds: the Euro core countries - most of all Germany, but also the Netherlands and Finland -...

The European Union (EU) has traditionally been an important economic partner for Asia. In addition to absorbing a significant share of the region's exports, the EU has been a major source of foreign direct investment and other capital flows into the region. In light of such close economic...

The development of the European Monetary Union is related to Milton Friedman's critique of the Bretton Woods System that started a vigorous debate about “fixed versus flexible exchange rates.” This paper contrasts briefly the arguments pro and con flexible exchange rates at this time. After...

This paper analyzes the Euro crisis in light of the experience of center-periphery relations over the last 40 years of renewed financial globalization. The crisis shows the characteristic pattern evident in so many other crises in the developing world: i.e. “boom” and “bust” phases of...

This paper examines the impact of European Economic and Monetary Union (EMU) on trade within the euro area. Using panel data for 22 industrial countries, the analysis estimates the effect of the euro`s arrival on area-wide trade compared to bilateral trade flows between other industrial...

For several years prior to 2010, countries in the euro area periphery engaged in heavy borrowing from foreign private investors, allowing domestic spending to outpace incomes. Now these countries face debt crises reflecting a loss of investor confidence in the sustainability of their finances....

This paper analyzes the causes of the sovereign debt crisis in the eurozone and examines the policy alternatives confronting euro area governments. It suggests that pooling fiscal risks, creating an EU Treasury and issuing jointly-backed euro bonds is an optimal solution and the inevitable...

The paper reviews the origins and complexity of the ongoing Eurozone debt crisis in which bank bad debts and government debts have become intertwined in a ‘Doom Loop'. It reports on a ‘Round Table'(panel) discussion chaired by the author on behalf of the UK's Money, Macro, Finance Research...

The paper reviews the origins and complexity of the ongoing Eurozone debt crisis in which bank bad debts and government debts have become intertwined in a ‘Doom Loop'. It reports on a ‘Round Table'(panel) discussion chaired by the author on behalf of the UK's Money, Macro, Finance Research...