Getting to grips with the implicit guarantee for sovereigns would be a big step towards eliminating the inherent tensions in the monetary union’s structure. Removing the implicit guarantee for banks would be another one. To make that happen, we have to ensure the resolvability of banks. Defining a clear hierarchy of creditors is crucial.
It rose in 17 of the 22 OECD countries for which long-term data series are available. Of the eight euro area countries for which we have data, inequality increased in five, changed little in two and declined in one. Thus, although incomes remain more unequally distributed in the United States, the data suggest that inequality is also on the rise in the euro area.