Category Archives: Lessons from the euro’s first 20 years

ADEMU explained: Lessons from the euro crisis and dealing with the debt overhang, video with Giancarlo Corsetti

Giancarlo Corsetti looks back at 20 years of the euro and asks what lessons can be learned from history in this short video.  Continue reading

POLICY BRIEF: Lessons from the euro crisis and dealing with the debt overhang


  • To understand the roots of the polarisation of risk in countries in the euro area
  • To design institutional frameworks that combine aggregate risk reduction with enhanced risk sharing

By Giancarlo Corsetti, Cambridge University and CEPR

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POLICY BRIEF: One money, many markets


  • Euro area aggregate business cycle explains a large proportion of the short-run fluctuations of its member countries.
  • Monetary policy transmission in the euro area appears to be persistently heterogeneous across member countries.
  • The degree of heterogeneity is inversely related to the degree of cross-border institutional convergence. While country-level financial variables react fairly similarly to the same monetary policy shock, variables naturally related to markets that have seen little convergence, such as housing and labour markets, react in significantly asymmetric ways.
  • Indeed, the heterogeneity found in monetary transmission into housing markets and personal consumption is correlated with differences in home ownership rates – an indicator reflecting many dimensions in which national housing markets differ from each other.

By João Duarte

View the policy brief.