The governance of a fragile Eurozone. CEPS Working Document No. 346, May 2011

摘要: When entering a monetary union, member countries change the nature of their sovereign debt in fundamental way, i.e. they cease to have control over currency which is issued. As result, financial markets can force these countries’ sovereigns into default. In this sense, status union downgraded that an emerging economy. This makes fragile and vulnerable changing market sentiments. It also it possible self-fulfilling multiple equilibria arise. This paper analyses implications fragility for governance eurozone. concludes new structure (ESM) does not sufficiently recognize fragility. Some features assistance fact are likely increase addition, prevent from using automatic stabilizers during recession. surely step backward long history social progress Europe. The author suggests different approach deal with problems.