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Extraordinary times call for extraordinary measures. The European Central Bank introduced a range of measures to stabilise the region’s economy when the worst financial crisis for decades began in 2008. Quantitative easing (QE) was seen as one way to help boost liquidity in the banking system – but did it have the desired effect?

Research by our faculty shows that QE may affect asset prices and possibly lead to risks in the Eurozone. Their studies also suggest ways in which the European Central Bank can strengthen economies and markets in turbulent times.

Organising European funding so that governments with limited capital can protect the region’s economies is one solution. Another is to introduce a sovereign debt restructuring mechanism to help insolvent countries within the EU. This measure would not only reduce debt in the Eurozone, but also give European nations the financial stability to deal with future crises.

A new start for the Eurozone: Dealing with debt


Leading voices in the Eurozone debate discuss the measures Eurozone countries need to put in place to guard against returning financial instability that could threaten a sustainable recovery. This report is the first in a series of Monitoring the Eurozone reports from the Centre for Economic Policy Research, which will define the biggest economic challenges the continent will face in the coming years as it tries to prevent a recurrence of the 2008 global crisis. LBS Professors of Economics Lucrezia Reichlin and Hélène Rey are among the authors of this report.

Faculty thought leadership articles and commentary


Biting the insolvency bullet

How facing the facts about chronically indebted member-countries can bring stability to the Eurozone.


Three steps to global financial stability

The IMF's Jose Viñals highlights the policy upgrades needed to deal with three key challenges which threaten the international economy.


Making the Eurozone more resilient: What is needed now and what can wait?

Britain voted to leave the EU. This is terrible news for the UK, but it is also bad news for the Eurozone. Brexit opens the door to all sorts of shocks, and dangerous political snowball effects. Now is the time to shore up the Eurozone’s resiliency.