School of Business and Economics

Research blog from the School of Business and Economics

Blog

blog photo

Contagion within and without of the Euro zone

One of the claims of Euro zone membership for the southern European countries was that by joining the Euro their governments could borrow at low (northern European) rates of interest. The reason for this was that there would be no exchange rate risk as all borrowing would be in Euros. This argument, however, ignored the […]