Towards a more resilient euro area

Esther Gordo ^[1] ; Ivan Kataryniuk ^[1]
1. [1] Banco de España
  
  Banco de España
  
  Madrid, España
Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 8, Nº. 2, 2019 (Ejemplar dedicado a: Quality of public finance), págs. 106-114
Idioma: español
Enlaces
- Texto completo (pdf)

Resumen
- The euro area has shown lower capacity to resist shocks than other monetary unions, such as the US. One possible determinant is the lack of risk-sharing mechanisms. In this article, we estimate the risk-sharing capacity of the Euro Area according to the Asdrubali et al. (1996) methodology. The results show that the degree of risk-sharing is low in the euro area, in particular, due to underdeveloped capital markets and the lack of a central fiscal capacity. We suggest venues of reform to increase the economic resilience of the common currency area.