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Creating a ‘multi-speed Europe’ would divide the EU and diminish it as a foreign policy actor

Chryssogelos, Angelos, (2017), «Creating a ‘multi-speed Europe’ would divide the EU and diminish it as a foreign policy actor», LSE EUROPP, 5 Απριλίου The notion of creating a ‘multi-speed Europe’, in which some EU members pursue closer integration than others, has been frequently raised since the UK’s EU referendum. Angelos Chryssogelos argues that while the idea may appear to be a neat solution to the current pressures the EU faces, …Read More

Europe’s Other Populist Problem

Åslund, Anders, (2017), «Europe’s Other Populist Problem», Project Syndicate, 5 Απριλίου European voters, looking at Donald Trump’s chaotic presidency in the United States and the hard road ahead for a post-Brexit Britain, may be turning away from right-wing populists such as Marine Le Pen in France and Geert Wilders in the Netherlands. But if European governments are to keep their own populists at bay, they will need to implement the …Read More

Brexit Creates Window Of Opportunities For The EU

De Grauwe, Paul, (2017), «Brexit Creates Window Of Opportunities For The EU», Social Europe, 5 Απριλίου The British government has officially started the “divorce” procedure from the European Union. This procedure must be completed within two years. In April 2019 the UK will cease to be a member of the EU. Most divorces are painful affairs mainly because an agreement has to be found on who pays whom. The same …Read More

Eurozone unemployment falls to its lowest rate in 8 years

Khan Mehreen, (2017), «Eurozone unemployment falls to its lowest rate in 8 years», Financial Times, 3 Απριλίου More than 1m people have been lifted out of unemployment in the eurozone during the past year, pushing the jobless rate to the lowest in almost eight years and underscoring how the economic recovery is gathering pace across the bloc. Factories in the eurozone also enjoyed another bumper month, reporting their highest levels …Read More

Did the crisis permanently scar the Portuguese labour market? Evidence from a Markov-switching Beveridge curve analysis

Vansteenkiste, Isabel, (2017), «Did the crisis permanently scar the Portuguese labour market? Evidence from a Markov-switching Beveridge curve analysis», ECB, Απρίλιος In this paper we analyse to what extent the outward shift in the Portuguese Beveridge curve since 2007 has been due to structural or cyclical factors and how likely the outward shift will persist. We do this by empirically estimating the Beveridge curve in a Markov-switching panel setting with time-varying …Read More

Labor Market Institutions and the Cost of Recessions

Scheffel, Martin, Krebs, Tom, (2017), «Labor Market Institutions and the Cost of Recessions», IMF, 3 Απριλίου This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance (JSA), on the output cost and welfare cost of recessions. The paper develops a tractable incomplete-market model with search unemployment, skill depreciation during unemployment, and idiosyncratic as well as aggregate labor market risk. The theoretical analysis shows that …Read More

Fiscal Crises

Farah-Yacoub, Juan, Gerling, Kerstin, A Medas, Paulo, Poghosyan, Tigran, Xu, Yizhi, (2017), «Fiscal Crises», IMF, 3 Απριλίου A key objective of fiscal policy is to maintain the sustainability of public finances and avoid crises. Remarkably, there is very limited analysis on fiscal crises. This paper presents a new database of fiscal crises covering different country groups, including low-income developing countries (LIDCs) that have been mostly ignored in the past. Countries faced …Read More

After The Rome Declaration: A Union – Not A State

Fabbrini , Sergio, (2017), «After The Rome Declaration: A Union – Not A State», Social Europe, 4 Απριλίου The Declaration recites: “We will act together, at different paces and intensity where necessary, while moving in the same direction, as we have done in the past, in line with the Treaties and keeping the door open to those who want to join later. Our Union is undivided and indivisible”. Indeed, the …Read More

Financial Transactions Taxes Make the Economy More Efficient

Baker, Dean, (2017), «Financial Transactions Taxes Make the Economy More Efficient», CEPR, 3 Απριλίου The government of Belgium is arguing that trades by these funds should not be subject to the tax. This objection makes little sense if the goal of the Belgium government is actually to protect the pension funds. Of course it is a great line of argument if the point is to sabotage the FTT while appearing to …Read More

The conduct of monetary policy in a diverse monetary union

Perotti , Enrico, (2017), «The conduct of monetary policy in a diverse monetary union», Vox EU, 4 Απριλίου The monetary union of the euro has been established between very diverse countries. In itself, diversity is a positive feature, since variation in comparative advantages enables more risk sharing and gains from enhanced trade (Alesina and la Ferrara 2005). Yet European countries also differ in terms of institutional quality. This difference is …Read More

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