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Working Paper

Europe between financial repression and regulatory capture

Highlights The financial crisis modified drastically and rapidly the European financial system’s political economy, with the emergence of two competing narratives. First, government agencies are frequently described as being at the mercy of the financial sector, routinely hijacking political, regulatory and supervisory processes, a trend often referred to as “capture”. But alternatively, governments are portrayed […]

By: Éric Monnet, Stefano Pagliari and Shahin Vallée Topic: Finance & Financial Regulation Date: July 9, 2014
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Blog Post

From mutual insurance to fiscal federalism

Almost exactly 25 years ago, the Committee for the study of economic and monetary union was presenting its report to the European Council outlining the process of European monetary unification and setting out the architecture of the single currency to be.

By: Shahin Vallée Topic: European Macroeconomics & Governance Date: June 3, 2014
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Working Paper

Global and regional financial safety nets: lessons from Europe and Asia

This paper analyses the relationships between global and regional financial safety nets, and uncovers the potential tensions and operational challenges associated with the involvement of several institutional players with potentially different interests, analytical biases and governance.

By: Changyong Rhee, Lea Sumulong and Shahin Vallée Topic: Finance & Financial Regulation, Global Economics & Governance Date: November 20, 2013
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Book/Special report

EU-Korea Economic Exchange

Articles published during the Bruegel/Korea Institute of Finance project on ‘EU-Korea policy responses to the global financial and economic crisis and the scope for internationalisation of the financial services industry’

By: Zsolt Darvas, Chung-Han Kim, Shahin Vallée, Nicolas Véron, Haesik Park, Georg Zachmann, Jeong Ho Suh, Jean Pisani-Ferry, Christopher Byungho Suh, Reinhilde Veugelers, Hyoungsik Noh, Sungwook Park, Jabonn Kim, Mansoo Jee, Marco Antonielli and Mario Mariniello Topic: Global Economics & Governance Date: April 22, 2013
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Blog Post

The creation of euro area safety nets

The financial crisis has exposed the need to devise stronger and broader international and regional safety nets in order to deal with economic and financial shocks and allow for countries to adjust. The euro area has developed several such mechanisms over the last couple of years through a process of trial and error and gradual […]

By: Michiel Bijlsma and Shahin Vallée Topic: European Macroeconomics & Governance Date: July 6, 2012
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Working Paper

Paths to eurobonds

This paper discusses proposals for common euro area sovereign securities. Such instruments can potentially serve two functions: in the short-term, stabilize financialmarkets and banks and, in the medium-term, help improve the euro area economic governance framework through enhanced fiscal discipline and risk-sharing.

By: Stijn Claessens and Shahin Vallée Topic: European Macroeconomics & Governance Date: July 3, 2012
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Paths to eurobonds

The defining feature of the European Monetary Union is that it was purposefully designed as a monetary union without a fiscal union. In this sense, the political and intellectual consensus that gave birth to the euro was one in which this unusual form of economic and monetary union was deemed both politically and economically sustainable. The defining feature of the European Monetary Union is that it was purposefully designed as a monetary union without a fiscal union. In this sense, the political and intellectual consensus that gave birth to the euro was one in which this unusual form of economic and monetary union was deemed both politically and economically sustainable. Yet both the history of monetary unions (see Bordo et al (2011)) and the ongoing crisis seem to challenge this very assumption. 

By: Shahin Vallée Topic: European Macroeconomics & Governance Date: July 3, 2012
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Paths to eurobonds

Guntram Wolff: You are the author of a study on Eurobonds. Eurobonds are certainly discussed at the moment, but there are a lot of different models of how to introduce Eurobonds and how Eurobonds should be designed. Would you like to give us a comparison of the different models out there? Shahin Vallée: The paper […]

By: Shahin Vallée and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: July 2, 2012
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Working Paper

The creation of euro area financial safety nets

This paper provides an overview of the recent financial stability mechanisms and their various shortcomings and tries to brush the outline of a more comprehensive safety net architecture that would coherently address the banking, sovereign and external imbalances crises against both transitory and more permanent shocks.

By: Michiel Bijlsma and Shahin Vallée Topic: European Macroeconomics & Governance, Finance & Financial Regulation Date: July 2, 2012
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Blog Post

Banking union vs. fiscal union and capture

Banking union is all the rage these days. There seems to be a general intellectual agreement that cutting the vicious feedback loop between banks and their respective sovereigns is one pressing matter (see Bruegel’s recent publications on the matter). There seems to be some convergence on the idea of (i) a supranational guarantee of deposits […]

By: Shahin Vallée Topic: European Macroeconomics & Governance, Finance & Financial Regulation Date: July 2, 2012
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What kind of banking union?

Shahin Vallée: We are just a few days ahead of an important European Council meeting. There have been a number of discussions around this meeting. Banking union on one side, discussion about budgetary integration, political union and of course, the discussion about the growth agenda. What do you think are the important topics and what […]

By: Guntram B. Wolff and Shahin Vallée Topic: European Macroeconomics & Governance Date: June 26, 2012
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Blog Post

The Weekender (last edition)

Dear All, I have to inform you that this is my last weekender. I have recently accepted to join the Cabinet of President Van Rompuy and I will be starting very soon. I understand that writing this weekender somewhat helped me to get this job and so I’m thankful to Bruegel for offering me the […]

By: Shahin Vallée Topic: European Macroeconomics & Governance Date: June 25, 2012