Decoding Euro-moralizations

There are some moral debates about the Euro going on in the international blogosphere with Tyler Cowen and Ryan Aventas the main participants, and Scott Sumner adding some interesting historical perspective.  In my view, Ryan and Tyler are not talking about the same thing, so let me offer a different take on the issue. In discussions of the Euro crisis, …

Why we need the European Central Bank as Lender and Owner of Last Resort

A guest post by Arash Molavi Vasséi This post summarizes a short policy note in which I argue that the only feasible as well as incentive-compatible solution to the current sovereign debt crisis in the Eurozone involves the European Central Bank (ECB) as a Lender of Last Resort to the Eurozone’s core countries like France, Austria, Finland, and …