1. Why are the bond and equity markets in Eurozone less integrated than the money market?
  2. How has the sovereign debt crisis led to a reversal of financial integration in the Eurozone?
  3. The sovereign debt crisis has also led to a build up of Target-2 imbalances. Why has this happened?
  4. Why have these Target-2 balances declined again after 2012?
  5. Why have they increases again since 2015?
  6. Is the insurance against asymmetric shocks provided by integrated financial markets a perfect substitute for the insurance provided by an integrated government budget?
  7. Explain why the dollar became the most prominent world currency despite the fact that it has sometimes been subjected to large depreciations.
  8. Explain why the continuing segmentation of the banking systems in Europe reduces the potential for insurance against asymmetric shocks.
  9. Is the financial crisis going to speed up (or slow down) the process for the euro to become a major international currency?
  10. Why is it that budgetary union is necessary to maintain an integrated banking system in the Eurozone?
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