Bulletin n. 1-2/2014
November 2014
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
    • 383-386
    Comment on “Lessons for Monetary Policy from the Euro-Area Crisis”
    in Journal of Macroeconomics , Volume 39, Part B, March 2014 ,  2014 ,  Hardouvelis Gikas A.
    This comment discusses and extends the paper: “Lessons for Monetary Policy from the Euro Area Crisis,” by Charles Goodhart. The comment claims the Eurosystem was more sluggish in responding to the crisis than the Federal Reserve due to restrictions originating from its mandate. Yet today’s challenge runs deeper, as the absence of a banking union in the Euro Area has allowed a large fragmentation in financial intermediation. The critical question is: “Given that the Euro Area is not an Optimum Currency Area and a banking union will take a long time to materialize, can the Eurosystem find a way to alleviate the fragmentation in lending rates without compromising its independence?” The comment offers a solution, which would expand the monetary toolbox.
    ©2001 - 2020 - Centro Studi sul Federalismo - P. IVA 94067130016