| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
|---|---|
| Series Title | European Economy: Economic Papers |
| Series Details | No.498, April 2013 |
| Publication Date | April 2013 |
| ISBN | 978-92-79-28580-6 |
| ISSN | 1725-3187 |
| EC | KC-AI-13-498-EN-N |
| Content Type | Journal | Series | Blog, Report |
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This paper argues that the sovereign debt crisis is the result of a lack of fiscal discipline broadly defined to include adequate banking supervision. The paper argues that Europe has inadvertently adopted the wrong model of collective discipline, because it is centralized while a decentralized model not only better fits the Euro Area makeup but also has a superior track record. It also notes the need for the ECB to accept its role of lender of last resort, which in turn requires the adoption of a full-blown banking union. |
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| Source Link | http://ec.europa.eu/economy_finance/publications/economic_paper/2013/ecp498_en.htm |
| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Countries / Regions | Europe |
