Lizoain, D., (2013), “Notes on Internal Devaluation”, Social Europe Journal, 27 Σεπτεμβρίου. The Spanish government’s formula for exiting the crisis is called an internal devaluation. This is a euphemism. They are attempting a generalized reduction in wages that requires a weakening of collective bargaining. For this reason, it is worthwhile to explore the concept of internal devaluation in more detail. The theory and the historical evidence is profoundly weak. In …Read More

Mariniello, M., (2013), “Do European fines deter price fixing?”, VoxEU, 22 Σεπτεμβρίου. Cartel fines imposed by the European Commission routinely reach hundreds of millions of euro, having increased since the new 2006 fining policy. This column argues that they are still below their optimal level and come too slowly. Fines were often lower than the additional cartel profits and imposed 10 to 20 years after making the law-breaking decision was …Read More

Cohen-Setton, J., (2013), “Blogs review: Battle of narratives over the European recovery”, Bruegel, 24 Σεπτεμβρίου. Many European leaders have started to claim credit for the recent improvement in economic conditions in the Eurozone. The boldest example was certainly the op-ed written last week by Wolfgang Schauble where Germany’s Federal Minister of Finance used the good news to claim vindication over the skeptics of the European approach to the EMU crisis. …Read More

Fubini, F., (2013), “Europe’s Japan?”, Project Syndicate, 20 Σεπτεμβρίου. Since the global economic crisis began in 2008, Italy’s GDP has declined by about 8%, nearly a million workers have lost their jobs, and real wages have come under increasing pressure. In southern Italy today, a young person – especially a woman – on a permanent work contract, being paid on time and in full, is a statistical oddity. And yet, …Read More

Krugman, P., (2013), “The Pain In Spain Is Not Hard To Explain”, The New York Times, The Opinion Pages, 22 Σεπτεμβρίου. Via Philip Lane, the WSJ reports that the European Commission is reconsidering its methods for estimating potential output for Spain and other countries. And high time too.   Σχετικές Αναρτήσεις Hugh, E., (2013), “Spain – The Recession May Be Ending But The Crisis Continues”, www.EconoMonitor.com, 9 Σεπτεμβρίου. Darvas, Z., (2013), …Read More

Darvas, Z. and Merler, S., (2013), “-15% to +4%: Taylor-rule interest rates for euro area countries”, Bruegel, 18 Σεπτεμβρίου. Does one size fit all? Before the crisis, there was a major debate on whether the single interest rate set by the European Central Bank (ECB) would be suitable for all members of the euro area, which have diverse economic conditions. The debate became quieter since the euro-crisis, as there is …Read More