Working Paper


Karl Whelan



eurozone financial stability future economic stabilization european union countries financial crises european union countries sovereign debt euro financial policy

The future for Eurozone financial stability policy (2010)

Abstract The past few months have exposed serious problems in relation toEurope’s ability to cope with financial stress. Placing the new Financial Stabilityfunds on a permanent basis, in the form of a new European Monetary Fund willbe required if Europe is to deal effectively with the serious debt problems ofsome Eurozone countries. However, this fund should exist to manage sovereigndefaults in an orderly manner, not to prevent them altogether. Bank supervisorsalso need to publish regular stress tests, change their regulations on the riskweighting of sovereign debt and put new resolution procedures in place.Together, these reforms will allow Europe to deal with future sovereign debtproblems without provoking a crisis.
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Karl Whelan

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Karl Whelan
University College Dublin
Total Publications: 70