"Can the Euro Be Saved?"
Working Paper,
2011
Publication type: Working paper
Research Archive Topic: Business Economics and Public Policy, Corporate Finance, World Business
Abstract
A sovereign debt crisis in the eurozone has morphed into a crisis of the euro itself, revealing three deep flaws in the euro's design. Escalating inter-country debt is the predictable result of locking together the currencies of countries as different as Germany and Greece. There is no governance structure to make binding decisions about debt restructuring. Most importantly, the ECB itself holds so many risky assets that it is frightened at the otherwise logical solution of debt restructuring. Only radical action could save the common currency.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.