Widuto, Agnieszka, (2016), “Structural reform support programme 2017-2020”, European Parliament, Ιούλιος Structural reforms have been identified as crucial to accelerating economic recovery, boosting growth and reducing unemployment. In November 2015, the European Commission proposed to establish the Structural Reform Support Programme 2017- 2020, to provide Member States with technical assistance in designing and implementing structural reforms, with a budget of €142.8 million taken from existing allocations to the structural and investment …Read More
Impact of the asset purchase programme on euro area government bond yields using market news
De Santis, Roberto A., (2016), “Impact of the asset purchase programme on euro area government bond yields using market news”, European Central Bank, Working Paper Series 1939, Ιούλιος The major central banks pursuing Quantitative Easing (QE) have bought large volumes of public and private assets with purchases carried out in several stages. The overall balance of evidence from the literature on QE is that central bank asset purchases have had a …Read More
Bond risk premia, macroeconomic factors and financial crisis in the euro area
Garcia, Juan Angel, Werner, Sebastian E. V., (2016), “Bond risk premia, macroeconomic factors and financial crisis in the euro area”, European Central Bank, Working Paper Series 1938, Ιούλιος Understanding the determinants of bond risk premia is increasingly important for both investors and policymakers. Among those potential determinants, macroeconomic risks are particularly relevant, and economic indeed theory suggests that investors should be compensated for exposures associated with economic fluctuations. In addition, sovereign bond market …Read More
The Return of Ireland’s Housing Bubble
Gerlach, Stefan, (2016), “The Return of Ireland’s Housing Bubble”, Project Syndicate, 14 Ιουλίου After having endured the collapse of its housing market less than a decade ago, Ireland has lately been experiencing a blistering recovery in prices, which already have risen in Dublin by some 50% from the trough in 2010. Is Ireland setting itself up for another devastating crash? Ιt’s no secret that the collapse of asset bubbles carries …Read More
Financing Vs. Spending Unions: How To Remedy The Euro Zone’s Original Sin
Palley, Thomas, (2016), “Financing Vs. Spending Unions: How To Remedy The Euro Zone’s Original Sin”, Social Europe, 14 Ιουλίου In economic policy, timing isn’t everything, it’s the only thing. The euro zone crisis has been evolving for over seven years, making it difficult to time policy proposals. Now, the shock of Brexit has created a definitive political opportunity for reforming rather than patching the euro. With that in mind, I …Read More
Sovereign and banking risk: Completing the union and breaking the loop
Navaretti, Giorgio Barba, Calzolari, Giacomo, Pozzolo, Alberto Franco, (2016), “Sovereign and banking risk: Completing the union and breaking the loop”, Voxeu, 15 Ιουλίου Eurozone countries are facing a stalemate in the completion of the Banking Union, at the heart of which is the regulation of banks’ sovereign exposures. This column introduces the latest issue of European Economy, which examines the interactions between banks and sovereign risk, the build up of sovereign risk during the crisis, …Read More
Common rules and new framework for securitisation
European Parliament, (2016), “Common rules and new framework for securitisation“, Ιούλιος In autumn 2015, the European Commission proposed, in the context of the Capital Markets Union initiative, a regulation on securitisation. The proposal followed a consultation with stakeholders and took into account initiatives at global (IOSCO) and European levels (EBA). The Commission’s aim is to restore investor confidence in securitisation transactions and contribute to reviving the real economy through increased …Read More
Estimating gross value added volumes and prices by institutional sector
Wieland, Elisabeth, Kavonius, Ilja Kristian, (2016), “Estimating gross value added volumes and prices by institutional sector”, European Central Bank, Statistic Paper Series 14, Ιούλιος This paper reviews different estimation techniques to derive sectoral volumes and prices of GVA for the euro area by linking QSA to QNA data. First, we apply a nonparametric approach, which relies on existing information on the distribution of institutional sectors across economic activities. For this purpose, we use …Read More
Designing effective automatic stabilisers of the business cycle
McKay, Alisdair, Reis, Ricardo, (2016), “Designing effective automatic stabilisers of the business cycle”, Voxeu, 14 Ιουλίου Brexit has raised the possibility of a recession on both sides of the Atlantic. Unable to use traditional remedies like monetary or fiscal policy stimulus, policymakers may consider automatic fiscal stabilisers. This column examines the impact of automatic stabilisers through social insurance on the business cycle, and how its impact can be used to mitigate recession. Unemployment …Read More
Harmonising insolvency laws in the Euro Area: rationale, stock-taking and challenges. What role for the Eurogroup?
Valiante, Diego, (2016), “Harmonising insolvency laws in the Euro Area: rationale, stock-taking and challenges. What role for the Eurogroup?”, European Parliament, Ιούλιος There are four distinct areas where harmonising national insolvency frameworks can improve the functioning of the single market and the stability of the Euro area. Early restructuring of businesses, bank resolution, cross-border insolvency and NPL management rely on common features of local insolvency frameworks, which can affect their …Read More