Paradigm Lost: The Euro in Crisis

Paradigm Lost: The Euro in Crisis

The Carnegie Endowment for International Peace has issued a report on the ongoing Euro crisis and its implications for the rest of the world. The report, Paradigm Lost: The Euro in Crisis (139 pages, PDF), includes a summary of the events that led to ballooning public debt on the continent and the risks that debt poses to fragile European banks and the stability of the global economy. The report also describes how the Euro crisis has exposed the limitations of regional policy mechanisms in dealing with financial crises and underscores the vital role that a global lender of last resort (in this case the International Monetary Fund) can play.