Question: 1. Briefly describe the doom loop or deadly embrace between banks and governments, why it is a problem in a monetary union and how

1. Briefly describe the "doom loop" or "deadly embrace" between banks and

1. Briefly describe the "doom loop" or "deadly embrace" between banks and governments, why it is a problem in a monetary union and how it can be addressed. 2. Briefly explain if monetary unions lead to more or less fiscal discipline and why.

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1 The doom loop or deadly embrace refers to a problematic relationship between banks and governments particularly observed in a monetary union In this loop banks hold a significant amount of their own ... View full answer

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