No. 266. Macroeconomic Imbalances in the Euro Area, Symptom or cause of the crisis?:
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Bibliographic Details
Main Author: Gros, Daniel (Author)
Format: Electronic eBook
Language:English
Published: Brussels [Belgium] CEPS Centre for European Policy Studies 2012
Subjects:
Online Access:BSB01
Item Description:Lax financial conditions can foster credit booms. The global credit boom of the last decade led to larg ecapital flows across the world, including large movements of resources from the Northern countries of the euro area towards the Southern part. Since the start of the crisis and more markedly after 2009, these flows have suddenly stopped, creating severe adjustment pressures. At this point, the common monetary policy can only try to mitigate the unavoidable adjustment by maintaining overall financial stability. The challenge is to strike a delicate balance between providing liquidity for solvent institutions while keeping the overall pressure on for a rapid correction of the imbalances
Physical Description:1 Online-Ressource (12 Seiten)

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