A service of the


Volume 54, March/April 2019, Number 2 · pp. 78-84


Domesticating the Euro

Lorenzo Bini Smaghi, Michala Marcussen

When the collapse of Lehman Brothers in September 2008 sent shockwaves through global financial markets, the euro behaved like a safe haven currency, reflecting the credibility of the price stability target and the strength of the ECB as an institution. However, in the absence of a lender of last resort to the sovereign and a banking union, cracks soon appeared, triggering a costly crisis that saw the euro area periphery behave like an emerging market.


This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before April 2021 is possible via SpringerLink or in the next library.