Richard Baldwin, Francesco Giavazzi

The EZ Crisis is a long way from finished. The latest VoxEU eBook presents a consensus view of what caused the Crisis and why. It argues that this was a classic ‘sudden stop’ crisis – not a public-debt crisis. Excessive, cross-border lending and borrowing among EZ members in the pre-Crisis years – much of which ended up in non-traded sectors – was why Greece’s deficit deceit in 2009 could trigger such a massive crisis. The ultimate causes were policy failures that allowed the imbalances to get so large, a lack of institutions to absorb shocks at the EZ level, and poor crisis management.

Foreword

Introduction

Richard Baldwin and Francesco Giavazzi

Five years of crisis (resolution) – some lessons

Thorsten Beck and José-Luis Peydró

Maastricht flaws and remedies

Agnès Bénassy-Quéré

Roots of the Eurozone crisis: Incomplete development and imperfect credibility of institutions

Giancarlo Corsetti

Design failures of the Eurozone

Paul De Grauwe

Causes of Eurozone crises

Jeffrey Frankel

The Eurozone crisis and foreign debt

Daniel Gros

International financial flows and the Eurozone crisis

Philip R. Lane

What future for the Eurozone?

Stefano Micossi

Eurozone Original Sin? Nominal rather than institutional convergence

Elias Papaioannou

Structural reforms and monetary policy revisited

Paolo Pesenti

The main lessons to be drawn from the European financial crisis

Guido Tabellini

Causes of a continuing crisis: Not dealing with debt

Beatrice Weder di Mauro

Divergence of liability and control as the source of over-indebtedness and moral hazard in the European Monetary Union

Lars P Feld, Christoph M Schmidt, Isabel Schnabel and Volker Wieland

The Eurozone crisis: Too few lessons learned

Charles Wyplosz