By: Jean Pisani-Ferry, André Sapir and Alan Ahearne

A Bruegel report on adapting the policy framework of the euro area.

Eurozone breakup would trigger the mother of all financial crises

By: Barry Eichengreen

Households and firms would shift deposits to other euro-area banks producing a system-wide bank run. Investors would create a bond-market crisis. Here is what the train wreck would look like.

There is more to central banking than inflation targeting

By: Paul de Grauwe, K.U. Leuven

The subprime crisis shows that central banks cannot avoid taking responsibilities that include the prevention of bubbles and the supervision of all institutions that are in the business of creating credit and liquidity.

A pragmatic view of money

By: Stefan Gerlach, University of Frankfurt

If money growth is useful for forecasting inflation, it makes sense to look at it; if not, then it does not.

Give banks some credit for taking risks

By: Patrick Minford, Cardiff University

At some point the dirty linen on bank balance sheets will all be hung out to dry and priced into their shares; at that point the crisis will be over.

Thanks Tito and Luigi, but no thanks!

By: Alan Ahearne, Bruegel and NUI Galway

Why Greenspan’s interest policy is not to blame for the current crisis.

Why the ECB should look at M2

By: Georg Rich, Rich International Consulting

There is some econometric evidence for the demand for M2 to be more stable than demand for M3.

The German Economy: Be Careful What You Ask For

By: Barry Eichengreen, University of California, Berkeley

Germany's problem is the failure to recognize that industry and prosperity are no longer synonymous.

Wake-up call for the ECB

By: Charles Wyplosz, Graduate Institute of International Studies

For its own good, and for the benefits of the Euro area citizens, the ECB ought to change its public communication strategy.

France's fiscal follies

By: André Sapir, Université Libre de Bruxelles

Why Commissioner Almunia is right to urge France to stick to its commitment under the SGP.

A picture is worth a thousand words

By: Paul De Grauwe, K.U. Leuven

Is the growth rate of money a good signal of future inflation? Sometimes it is useful to look at a picture. A picture is worth one thousand words, they say.

The Economic Consequences of Mr S.

By: Jean Pisani-Ferry, Bruegel

In the aftermath of Nicolas Sarkozy’s resounding electoral victory, the three main questions are: Has he won a mandate for change? Which policies will he give priority to? And what will be the consequences for Europe?