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The Survivability of the Euro, Part I: Reform, Relevance and Robustness

Invesco’s Future of Europe series aims to address some of the most pressing questions surrounding the euro, the eurozone (EZ) and the European Union (EU), whilst also examining Europe’s troubled past, uncertain present and possible future. The second paper in the series, The Survivability of the Euro, comprises three parts, of which Reform, Relevance and Robustness is the first. In this paper we analyse the vital issue of imbalances between member states and explore the conflicts that they generate.

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Coping with chaos

Many investment approaches used for portfolio construction are based on efficient frontiers, notions of stable correlations and normal distribution assumptions. But how will they cope once chaos enters the market?

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