Kirkegaard, Jacob, (2013), “Did Cyprus Set a Dangerous Precedent? Some Further Thoughts”, The Peterson Institute for International Economics, 29 March.
The precedent of imposing losses on uninsured depositors in Laiki Bank and the Bank of Cyprus was a sound one, but that does not mean it will be a widely used one in the euro area—or that it puts the entire euro area banking system at risk of depositor runs. Some of the other precedents will do more good than harm.