A new eurozone crisis would most likely have a less uneven effect than in 2008 or 2011, not least because its largest economies are currently weak. But if a recession hits, policymakers will find it hard to mount an effective response.
LONDON – The 20th anniversary of the euro this year is a good time to reflect on the robustness of Europe’s monetary union. The memory of the last crisis, which began in the United States in 2008, is still fresh in the minds of Europeans: the eurozone suffered more than the US, with some of its members getting hit much harder than others. At a time when the eurozone is once again showing signs of a significant slowdown, it is important to understand what happened last time. Did we learn anything in the euro’s first 20 years that could help fight another recession?
LONDON – The 20th anniversary of the euro this year is a good time to reflect on the robustness of Europe’s monetary union. The memory of the last crisis, which began in the United States in 2008, is still fresh in the minds of Europeans: the eurozone suffered more than the US, with some of its members getting hit much harder than others. At a time when the eurozone is once again showing signs of a significant slowdown, it is important to understand what happened last time. Did we learn anything in the euro’s first 20 years that could help fight another recession?