Academic Research on European Capital Markets Institute (ECMI)

• Crisis in the eurozone and how to deal with it, De Grauwe, P. (2010). In this paper, Paul De Grauwe, Professor of Economics at Leuven University and Senior Associate Research Fellow at CEPS, explains in concise, non-technical terms, how the current financial crisis in the eurozone developed, distinguishing in turn the three main actors that have played a major role: Greece, the financial markets (including the rating agencies) and the eurozone authorities.
• External versus domestic debt in the euro crisis, Gros, D. (2011). As EU leaders muddle through the Eurozone crisis, the debate about its root causes continues. CEPS Director Daniel Gros argues in this Policy Brief that the debate is important if we are to understand how to prevent future crises. In his view, external debt is the key to the turmoil in European economies and that the focus on total public debt is therefore misleading.
• Global imbalances and the accumulation of risk, Gros, D. (2009). This paper explores the latest Policy Brief of Daniel Gros in which he gives a new angle on why the existence of current account imbalances should provoke the greatest financial crisis in living history if the raison dtre of a financial system is to deal with imbalances (between savers and investors). 
• Only a more active ECB can solve the euro crisis, De Grauwe, P. (2011). This paper asserts that the contagion currently afflicting sovereign bond markets in the eurozone can only be stopped if there is a central bank willing to be lender of last resort. The author argues that this reluctance of the ECB to take up its responsibility as a lender of last resort is the single most important factor explaining why the forces of contagion in the eurozones sovereign bond markets have not been stopped. 
• A Mechanism of Self-destruction of the Eurozone, De Grauwe, P. (2010). CEPS commentary,9(9), 2010. Drawing an analogy with the ill-fated Exchange Rate Mechanism (ERM) of the pre-eurozone era, Paul De Grauwe argues in a new CEPS Commentary that the creation of a sovereign debt default mechanism is a very bad decision that will make the eurozone more fragile by making financial crises an endemic feature. 
• Is socialEuropefit for globalisation?, Begg, I., Draxler, J., & Mortensen, J. (2008). This paper analyses the concept of globalization, and presents a study on possible effect of globalisation on European nations. 
• The seniority conundrum: Bail out countries but bail in private, short-term creditors?, Gros, D. (2010).CEPS Commentary,6. In this paper, CEPS Director Daniel Gros argues i that part of the reason for the failure of the bailout in the Irish market lies in a seemingly innocuous provision in the proposed permanent successor to the current European Financial Stability Facility in 2013. 
• A new budget for theEuropeanUnion?, Iozzo, A., Micossi, S., & Salvemini, M. T. (2008). This paper analyses then present budget of the European Union, and suggests that the value is outdated, as it was inaugurated decades ago. This paper proposes that the European budget could be reorganised in a tripartite form, with separate Chapters for its redistributive tasks, the production of European public goods and the use of financial resources raised in capital markets for large projects of European interest. 
• Which Union forEurope's Capital Markets?, Lannoo, K. (2015). This paper analyses the importance of a Capital Market in Europe. This Policy Brief calls for targeted measures to overcome fragmentation, through enhanced enforcement, strengthening of the European supervisory authorities, enhanced disclosure and comparability of financial information and the mobilisation savings in EU-wide investment funds. 
• What kind of governance for the eurozone?, De Grauwe, P. (2010). Much of the discussion about how to impose more convergence among member states of the eurozone has focused on what national governments should do to avoid divergent developments in a number of macroeconomic variables. Without denying that national governments bear part of the responsibility, this paper finds that the role of governments has been overemphasized and that conversely the role of the monetary authorities, in particular the European Central Bank, has been under-emphasised. 
• The Future ofEurope's FinancialCentres, Lannoo, K. (2007). The Economist.