Demertzis, Maria, Wolff, Guntram B., (2016), “The effectiveness of the European Central Bank’s Asset Purchase Programme”, Bruegel, 23 Ιουνίου Central banks resort to quantitative easing when the normal monetary policy tool of low- ering the short-term interest rate is con- strained. This constraint typically arises from the zero-lower bound, ie the reluctance to cut nominal rates below zero. This can result in a real interest rate that, while negative, is …Read More

Guntram B. Wolff, (2016), “The European Deposit Insurance Scheme”,Bruegel, 23 Μαϊου It is welcome that the European Union and the euro area in particular discuss the topic of a European deposit insurance. In fact, to complete banking union, three pillars are indispensable: banking supervision, bank resolution and deposit insurance. In terms of institution building, I would argue that supervision is now fully in place while the European Resolution Mechanism with …Read More

Paul-Jasper Dittrich, (2016), “A deepened Single market for labour and digital innovation”, Jacques Delors Institut Policy Paper 164, 11 Μαϊου 2016 Product market reforms in the digital sector can boost TFP-growth. The Digital Single Market (DSM) should become a cornerstone of future productivity growth. Several measures should be taken up to meet these objectives. The European Job Mobility Portal EURES could become a European employment agency in the long-term. National employment …Read More

Amato, Massimo, Fantacci, Luca, Papadimitriou, Dimitri B., Zezza, Gennaro, (2016), “Going Forward from B to A? Proposals for the Eurozone Crisis”, Levy Economics Institute of Bard College, Μάιος After reviewing the main determinants of the current eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, like Greece, that have so far adopted austerity measures in order to abide by their commitments to eurozone institutions and …Read More

Grossman, Richard, (2016), “Banking Crises”, Centre for Economic Policy Research, Μάιος Financial crises have been a common feature of the economic landscape for more than two centuries. The chapter defines banking crises, considers the type of costs that they impose, and outlines the most common causes of banking crises during the past 200 years. The remainder of the chapter considers five distinct historical periods: the nineteenth century, when the “boom-bust” pattern …Read More

De Grow, Paul, Ji, Yuemei, (2016), “Flexibility versus Stability: A difficult trade-off in the eurozone”, CEPS, 29 Απριλίου Optimal currency area (OCA) theory has been influential in pushing eurozone countries towards structural reforms to make product and labour markets more flexible. The underlying assumption of the OCA prescription for structural reform is that asymmetric shocks are permanent. However, when shocks are temporary it does not follow that more flexibility is the answer. …Read More

Altavilla, Carlo, Pagano, Marco, Simonelli, Saverio, (2016), “Bank Exposures and Sovereign Stress Transmission”, Centre for Economic Policy Research, Μάιος Using novel monthly data for 226 euro-area banks from 2007 to 2015, we investigate the causes and effects of banks’ sovereign exposures during and after the euro crisis. First, in the vulnerable countries, the publicly owned, recently bailed out and less strongly capitalized banks reacted to sovereign stress by increasing their domestic sovereign holdings …Read More

Elias, Aptus, Gersbach, Hans, Volker, Britz, (2016), “On the Economics of Crisis Contracts”, Centre for Economic Policy Research, Μάιος We examine the impact of so-called “Crisis Contracts” on bank managers’ risk-taking incentives and on the probability of banking crises. Under a Crisis Contract, managers are required to contribute a pre-specified share of their past earnings to finance public rescue funds when a crisis occurs. This can be viewed as a retroactive tax that …Read More

Deringer, Hanna, (2016),  “The Cost of Non-Schengen for the Single Market”, European Centre for International Political Economy, Μάιος A suspension of the Schengen Agreement would damage the European economy, in particular by undermining the European single market. And it would not just damage the movement of people and labour in Europe. Several studies show that the Schengen Agreement also eases the free flow of goods, services, and capital. Suspending Schengen would …Read More