Podcast
Questions and Answers
What exorbitant privilege has Germany had due to its position within the eurozone?
What exorbitant privilege has Germany had due to its position within the eurozone?
- Higher borrowing costs and a weaker currency
- Higher borrowing costs and a stronger currency
- Equal borrowing costs and a volatile currency
- Lower borrowing costs and a weaker currency (correct)
How has the euro been compared to the Deutschemark in terms of strength?
How has the euro been compared to the Deutschemark in terms of strength?
- Equally strong
- Much weaker (correct)
- Slightly weaker
- Stronger
What will play the most significant role in determining the future of the eurozone?
What will play the most significant role in determining the future of the eurozone?
- Economic indicators
- International trade agreements
- Central banks' decisions
- Politics (correct)
What remains necessary to sustain the eurozone, according to the text?
What remains necessary to sustain the eurozone, according to the text?
What did investors perceive about Spanish housing assets due to the perceived elimination of currency risk?
What did investors perceive about Spanish housing assets due to the perceived elimination of currency risk?
What was the consequence of capital flows from large savers to capital importers in the Eurozone?
What was the consequence of capital flows from large savers to capital importers in the Eurozone?
Why was a single currency believed to be needed following the devaluations of the early 1990s?
Why was a single currency believed to be needed following the devaluations of the early 1990s?
What made Spanish housing assets an attractive investment according to the text?
What made Spanish housing assets an attractive investment according to the text?
What is a key insight from the case of the eurozone regarding currency unions?
What is a key insight from the case of the eurozone regarding currency unions?
What did the European Central Bank do in August to intervene in the eurozone crisis?
What did the European Central Bank do in August to intervene in the eurozone crisis?
Which country required dollars post-Lehman Brothers collapse due to firms borrowing in dollars that domestic savers could not fully supply?
Which country required dollars post-Lehman Brothers collapse due to firms borrowing in dollars that domestic savers could not fully supply?
What role did the European Central Bank take on in relation to distressed peripheral countries?
What role did the European Central Bank take on in relation to distressed peripheral countries?
