Incomplete EMU Integration as an Amplifief of Financial Crisis



Year of publication 2014
Type Article in Proceedings
Conference Proceedings of the 2nd International Conference on European Integration 2014
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords Balance sheet; Central bank; ECB; Financial crisis; Quantitative easing
Description The financial crisis that hit major economies in 2007–2008 and the following recession triggers several fiscal and monetary policy responses. Although there are many important differences among major economies and their financial systems, central banks reacted almost identically by waves of various easing programs. In my contribution, I will focus on the coping with the crisis by FED, BoE, and ECB. I will compare the size, composition, and development of balance sheets of these central banks as well as an institutional context of their policy operations. On the basis of these comparisons, I will claim that the half-way European integration, limited to monetary union only without banking or fiscal union, is an important factor deepening the financial crisis and postponing its solution.

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