Banking Union as a Shock Absorber: Lessons for the Eurozone from the Us

This study investigates the shock-absorbing properties of a banking union. It makes a detailed comparison between the way in which banking unions have absorbed regional financial shock at the federal level in the USA, but have led to severe regional (national) financial dislocation and tensions in Europe, particularly within the Eurozone.

Daniel Gros is Director of CEPS. Ansgar Belke is Associate Senior Research Fellow at CEPS and Ad Personam Jean Monnet Professor of Macroeconomics and Director of the Institute of Business and Economic Studies (IBES) at the University of Duisburg-Essen.