It is the sudden operation of these centripetal (as opposed to centrifugal) forces of globalisation enabling the rapid propagation of shocks across borders which has led observers such as Rogoff to deem the euro area “the ultimate contagion machine”31.
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).