Eric Pentecost: 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 theRead more

Are austerity measures killing the Euro?

In a public lecture which took place recently at the School, invited speaker Professor Paul de Grauwe  (John Paulson Professor in European Political Economy at LSE) argued that the Euro will collapse unless there is much deeper political integration between the countries in the Euro zone, but as there is little prospect of greater politicalRead more