No Federation, No Central Banks

... of a country, believing its debt load to be unsustainable, the economy of the Eurozone as a whole will suffer significant damage due to speculation concerning the possibility that the affected state may leave the Eurozone. It should be noted that the European Central Bank (ECB), the only lender of last resort for the Eurozone members, played a key role in preventing Greece from defaulting. However, the author argues that the ECB should have a much stronger mandate, which is further proved by the financial regulator’s ...