The key policy elements to restore normalcy in the euro area thus require (i) redressing the macroeconomic imbalances and unsustainable fiscal policies that lie at the heart of the sovereign debt crisis in the euro area; (ii) much greater economic policy co-ordination among  30  See Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity, book by R. Rajan and L. Zingales, (2003).
31  See the interview of K. Rogoff in the Frankfurter Allgemeiner Zeitung, September 2011. 8  BIS central bankers’ speeches  monetary union members; and (iii) ensuring that there is an effective governance framework in place which can guard against similar instances from occurring in the future, inter alia through macroeconomic and fiscal surveillance and early correction mechanisms.