Myths and facts of the Euro crisis part 4 – how to save the Euro – an analysis by João Madeira

As shown in the previous text the run on bank deposits and sovereign debt of periphery countries justified the need for an intervention to change the negative expectations in debt markets and to help interest rates converge to the good equilibrium (governments pay lower interest rates and repay their debts). The creation of the EFSF […]

Myths and facts of the Euro crisis part 3 – capital flight and financial instability in the Eurozone – an analysis by João Madeira

My previous texts seem to suggest that the Euro is likely not the main cause for the problems several European countries currently face. If not the Euro, then what is the origin? The cause must be common not just to the periphery countries of the Euro but also to those other countries which have been […]