Jeffrey Frankel: Optimal Currency Areas and Governance - The Challenge of Europe (6/8)

The video discusses the evolution of economic theories and policies over the past decades, focusing on the optimum currency area theory, the Maastricht Treaty, and the sovereign debt crisis. It critiques the management of the Greek debt crisis and proposes alternative fiscal reforms inspired by Chile's model.

How did the sovereign debt crisis impact the perception of the euro and its governance?

What is the relationship between labor market flexibility and the success of a monetary union?

In what ways did the financial stability responsibilities change after the Greek debt crisis?

What alternative fiscal reforms are proposed to improve the Stability and Growth Pact?