What role for the ECB in managing the European sovereign debt crisis? (2011:11epa)


As the European sovereign debt crisis deepens, the fiscal resources of the European monetary union seem increasingly inadequate. So far, the euro area policy response has failed to change the market's rather pessimistic expectations. In this analysis, Martin Flodén, Professor of Economics at Stockholm University, discusses the role of the European Central Bank (ECB) in finding a solution to the debt crisis. Among other things, the author addresses ECB’s potential to take over euro assets and provide the market with liquidity.

The publication is part of the research project Long Term Effects of the Economic Crisis and is written in Swedish.

Martin Flodén is Professor of Economics at Stockholm University.