The experience of the first 20 years of Economic and Monetary Union (EMU) has shown that the amplitude of the business cycle can be intensified by the financial cycle. Indeed, the severity of the downturn following the global financial crisis across eurozone member states can be traced to excessive leverage.
It is an economic zone almost as large as the United States. I will follow the standard practice of distinguishing between “core countries” (such as Germany, France, the Netherlands, and Belgium) and “peripheral countries” (such as Greece, Ireland, Portugal, Spain, and Italy). 1  2  This speech is based on information available as of October 31, 2011. BIS central bankers’ speeches  A.