Shachmurove, Yochanan and Kowalski, Tadeusz, Why Institutions Matter? The Recent Experience of the United States and the European Union (February 11, 2015). Available for download at SSRN: http://ssrn.com/abstract=2563820

“This paper assesses the reactions of the United States and the twelve economies of the European Monetary Union (EMU) to the financial crisis of 2008-2009. The rapidly spreading financial and economic contagion uncovered structural problems of each member of the EMU that impacted their relative competitiveness. Furthermore, the crisis highlights the scale and scope of interdependences in the world economy. It unveiled economic and institutional flaws in the EMU, the European Union (EU) and the U.S. Additionally, in the U.S., the crisis brought to light institutional and industry conflicts of interest, as well as glaring regulatory failures.“