This paper investigates the causes of disproportionate increases of sovereign yields with respect to the interest rate on the 10 years German Bund within the Eurozone. Empirical evidence drawn from the BIS dataset on banks' portfolios shows that rapid financial integration, following the launch...

The aim of the 'Five Presidents Report' cited in the title acknowledges that an important driver of the European economic crisis has been the faulty original design of the Monetary Union, and that substantial steps are urgently needed towards the creation of truly supranational institutions. Yet...

The 'Five Presidents Report' cited in the title acknowledges that an important driver of the European economic crisis has been the faulty original design of the Monetary Union, and that substantial steps are urgently needed towards the creation of truly supranational institutions. Yet,...

In Europe, the creation of interregional policy institutions is almost complete in the monetary domain, whereas in the fiscal domain policy institutions are still those inherited from national states albeit strictly constrained by a set of supernational rules. This apparent mismatch between...