Lemoine, Matthieu, Lindé, Jesper, (2016), “Fiscal Consolidation Under Imperfect Credibility”, Centre for Economic Policy Research, Ιούλιος This paper examines the effects of expenditure-based fiscal consolidation when credibility as to whether the cuts will be long-lasting is imperfect. We contrast the impact limited credibility has when the consolidating country has the means to tailor monetary policy to its own needs, with the impact when the country is a small member of a …Read More

Eggertsson, Gauti B, Summers, Lawrence H., (2016), “Secular stagnation in the open economies: How it spreads, how it can be cured”, Voxeu, 22 Ιουλίου The secular stagnation hypothesis suggests that low interest rates may be the new normal in years to come. This column argues that this prospect should not only lead to a major rethinking of policy from the perspective of individual economies, but also a major rethinking about monetary …Read More

Andritzky, Jochen, Feld, Lars P, Schmidt, Christoph M, Schnabel, Isabel, Wieland, Volker, (2016),  “Creditor participation clauses: Making orderly sovereign debt restructuring feasible in the Eurozone”, Voxeu, 21 Ιουλίου To make the no-bailout clause credible and to enhance the effectiveness of crisis assistance, private creditors should contribute to crisis resolution in the Eurozone. This column proposes a mechanism to allow for orderly restructuring of sovereign debt as part of ESM programmes. If debt exceeds certain thresholds, …Read More

Minenna, Marcello, (2016), “The ECB At A Dangerous Crossroad As Berlin Endangers QE”, Social Europe, 20 Ιουλίου In the stormy aftermaths of Brexit, with Eurozone stock markets losing 8% on average and Sterling crashing, government bonds have remained substantially unperturbed. The ECB shield, in the form of the €80 billion of Public Sector Purchase Program (PSPP) monthly asset purchases, has been remarkably effective and has reduced volatility to the bare minimum. …Read More