Wren-Lewis, S., (2013), “The ‘Official’ Cost Of Austerity”, Social Europe Journal, 29 Οκτωβρίου. Well, not quite, but probably as close as we will ever get. In a new paper, Jan in‘t Veld uses the European Commission’s QUEST model to estimate the impact of fiscal consolidation in the Eurozone (EZ) from 2011 to 2013. The numbers in the table below include spillover effects from other EZ country fiscal consolidations, so they …Read More
Optimism about an end to the euro crisis is wrong
Münchau, W., (2013), “Optimism about an end to the euro crisis is wrong”, The Financial Times, 27 Οκτωβρίου. Adjustment is the key to ending the eurozone crisis. The optimists are saying that this process of regaining competitiveness is now taking place. Look at the success of the Spanish export sector or the fall in Greek wages. And, in any case, the eurozone economy is rebounding, which helps further. This judgment …Read More
Breakup Is Not A Solution to the Eurozone Crisis
Hacker, B., (2013), “Breakup Is Not A Solution to the Eurozone Crisis”, Social Europe Journal, 25 Οκτωβρίου. The unexpectedly high level of support for the new party “Alternative für Deutschland” (AFD) in the general elections in Germany puts their central program point back on the agenda of the political debate. Parties proposing a dissolving of the common currency might gain ground prior to the European Elections in 2014. But the …Read More
Why are Neo-liberal ideas so resilient?
Schmidt, V. and Thatcher, M., (2003), “Why are Neo-liberal ideas so resilient?”, Policy Network , 24 Οκτωβρίου. Given the abject failure of the Neo-liberal policy offer, why has it persisted as the dominant approach to European policymaking and is there any way out? Despite the economic crisis that hit the US and Europe full force in 2008, political leaders have made little attempt to rethink the neo-liberal ideas that are …Read More
Austerity and Growth: Dispelling Confusion with Some Facts
Tamborini, R., (2013), “Austerity and Growth: Dispelling Confusion with Some Facts”, EconoMonitor, 24 Οκτωβρίου. A lot of confusion surrounds the quarrel about austerity and growth in and among the Euro-countries. Confusion helps neither the assessment of the current policies nor the choice of the correct ones. Critics of austerity argue that it is mainly responsible for the extent and persistence of low or negative growth rates after the Great Recession …Read More
Massacre memories: German car sales and the EZ Crisis in Greece
Fouka, V. and Voth, H.J., (2013), “Massacre memories: German car sales and the EZ Crisis in Greece”, VoxEU, 23 Οκτωβρίου. The EZ crisis increased north-south conflicts between bailout providers and recipients – especially between Germany and Greece. This column shows evidence that political conflict directly translated into losses of market share for German car producers in Greece – especially in areas where German armed forces committed massacres during World War …Read More
Europe’s Flight from Futility
Vedrine, H., (2013), “Europe’s Flight from Futility”, Project Syndicate, 22 Οκτωβρίου. In the next 25 years, Europe’s share of the world population and global GDP is expected to fall considerably. Does that mean that a weakened Europe will fall prey to the rising powers of 2040? Given that Europe’s prospects are highly dependent on external factors, any speculation about its future must account for global conditions. One thing seems certain: …Read More
Unemployment in the Eurozone: Alternatives for α Regional Support Program
Weeks, J., (2013), “Unemployment in the Eurozone: Alternatives for α Regional Support Program”, Social Europe Journal, 21 Οκτωβρίου. A few days ago, the Bertelsmann Stiftung hosted a conference in Brussels on “Automatic Stabilizers for the Eurozone” (October 11), with the focus on an EU-wide system of supplemental unemployment benefits. On superficial inspection the conference agenda appeared to involve a technical assessment of policy alternatives, a conference for “policy wonks” to …Read More
The European crisis in the context of historical trilemmas
Bordo, M. and James, H., (2013), “The European crisis in the context of historical trilemmas”, VoxEU, 19 Οκτωβρίου. The Eurozone’s tangle of conflicting goals – a series of ‘trilemmas’ – is not without precedent. This column argues that it is reminiscent of the interwar situation. The interwar slump was so intractable not just due to financial issues, but also a crisis of democracy, of social stability, and of the international …Read More
To Save Europe, Free the Markets
Hollenbeck, F., (2013), “To Save Europe, Free the Markets”, The Mises Institute, 19 Οκτωβρίου. The current European economic strategy is to kick the can down the road. Debt levels in almost all European countries continue to rise and growth seems to be a long forgotten memory. The day of reckoning is around the corner, as Rudi Dornbush once warned, “[t]he crisis takes a much longer time coming than you think, …Read More