"A masterful analysis of the euro area's monetary and fiscal architecture, this book reveals how a patchwork of crisis responses has increasingly drawn the European Central Bank into fiscal dilemmas. It proposes bold yet feasible reforms to resolve these dilemmas while avoiding the complexities of fiscal unification. A must-read for anyone interested in the future of Europe!"-- Klaus Adam, University College London "There are many compelling accounts of the Eurozone crisis but the one by Cochrane, Garicano, and Masuch is different. Their superb forensic work is rooted in economic principles and in a deep understanding of Europe's institutional structure--and its limitations. This approach equips them well to draw clear-eyed conclusions and articulate bold reform proposals. A must-read for anyone interested in the future of Europe."-- Benoît Coeuré, former member of the Executive Board of the European Central Bank, president of the French Competition Authority "The creation of the euro is arguably the most ambitious monetary experiment of the past century, yet its results have been mixed. In this groundbreaking book, a 'dream team' of economists--Cochrane, Garicano, and Masuch--delve deeply into the euro's foundations, its turbulent crises, and the pathways for meaningful reform.

A must-read for economists, policymakers, and anyone interested in the euro, the European Union, or modern monetary economics, this book combines scholarly insight with practical solutions to one of the most pressing issues of our time for all Europeans."-- Jesús Fernández-Villaverde, University of Pennsylvania "Cochrane, Garicano, and Masuch offer a sharp and consistent guide to navigating the design of the EMU, its evolution from crisis to crisis, and the reforms needed to protect it from future shocks. Their insightful analysis concludes that the fragility of the current moment demands deep but feasible reforms to preserve them. This book is an essential contribution to the debate on the ways to build resilience to manage the next crisis."-- José Manuel González-Páramo, Former ECB Board member (2004-2012) and IESE Business School "Twenty-five years after the birth of the euro, this book offers the most comprehensive and insightful analysis ever of its many successes and how its institutions adapted to crises. These three leading economists understand better than anyone the multiple ways in which monetary, financial and fiscal policies are intertwined. Their deep expertise shines in every page as they inspect the right and wrong steps the euro has taken. By the end, the reader is left with a proposed set of essential reforms for the euro's next twenty-five years.

"-- Ricardo Reis, London School of Economics "A brilliant economic analysis of eurozone institutions and their necessary reforms--as expected by an author team with such combined gravitas on academic theory and Eurozone policymaking."-- Dimitri Vayanos, London School of Economics.