Publication

This policy brief argues that the root causes of the European economic crisis can only be tackled by instruments of fiscal policy, financial market regulatory policy and structural policies. Monetary policy should not be left with the challenge to tackle problems that are fundamentally non-monetary in nature. The authors detail solutions to the economic crisis, in both the short and long term. The authors envisage an economic system that is more resistant to crises, underpinned by credible rules, and designed primarily to achieve financial market stability and fiscal responsibility.