Asymmetric trends and European monetary policy in t he Post-Bretton Woods Era
In public debate the crisis of the eurozone has been laid on the footstep of imprudent government finance. This paper argues that the depth and longevity of the crisis instead is due to ‘asymmetric trends’ that are inherent in the eurozone. We show this, first, by a test of the ‘one-size-fits-all’ ECB monetary policy. The results provide an estimate of how ECB at the same time fuelled some ‘bubble