Gilbert, Mark, (2017), “Maastricht’s Flaws Still Plague Europe, 25 Years Later”, BloombergView, 24 Φεβρουαρίου Twenty five years ago this month, the representatives of 12 countries gathered in the Dutch city of Maastricht to sign the Treaty on European Union. Its claim to mark “a new stage in the process of creating an ever closer union among the peoples of Europe” looks grandiose and overblown a quarter of a century later. …Read More

Hagan, Sean, Obstfeld, Maurice, Thomsen, Poul M., (2017), “Dealing with Sovereign Debt—The IMF Perspective”, iMFdirect, 23 Φεβρουαρίου Debt is central to the functioning of a modern economy. Firms can use it to finance investments in future productivity. Households can use it to finance lumpy purchases, such as big consumer durables, or a home. Sometimes, however, firms’ investments do not pan out or a household’s main earner loses his or her job. …Read More

Batsaikhan Uuriintuya , Kalcik, Robert , Schoenmaker, Dirk , (2017), “Brexit and the European financial system”, Bruegel, 9 Φεβρουαρίου London is an international financial centre, serving European and global clients. A hard Brexit would lead to a partial migration of financial firms from London to the EU27 (EU minus UK) to ensure they can continue to serve their EU27 clients. Four major cities will host most of the new EU27 wholesale …Read More

Sri-Kumar, Komal, (2017), “The Opening for Investors in Europe’s Political Turmoil”, BloombergView, 22 Φεβρουαρίου After a period of relative calm, volatility and investor fear have returned to Europe. Investors took in stride the Brexit vote last June, along with the decision by Italian voters in December to reject Prime Minister Matteo Renzi’s referendum, which led to his resignation. But three national elections this year — in the Netherlands next month, …Read More

Onado, Marco, (2017), “In search of a European solution for banks’ non-performing loans”, VoxEu, 21 Φεβρουαρίου After ten years of crisis, European banks are far from seeing the end of the tunnel. While US banks have recovered fairly quickly and have reached in 2012-15 a return on equity of 9.3%, European banks are still stuck at a meagre 3.7%, well below their cost of capital (IMF 2016). This gap is explained …Read More