Wendy Carlin: Optimal Currency Areas and Governance - The Challenge of Europe (5/8)

The video discusses the core periphery issue in the eurozone, focusing on political and economic crises, missed opportunities for EU intervention, and vulnerabilities within the EMU. It examines the dynamics between core and periphery countries, challenges in stabilization policy, and the role of endogeneity and integration. The discussion highlights the complexities of living in a common currency area with Germany and the need for reforms to address these challenges.

What were the implications of the divergence between core and periphery economies?

What role did fiscal policy play in the stabilization of the eurozone?

Why is living in a common currency area with Germany considered difficult?

How did the restructuring of German companies impact the southern periphery?