Galí, J. (2014) “The Effects of a Money-Financed Fiscal Stimulus“, Centre for Economic Policy Research, 24 Σεπτεμβρίου. I analyze the effects of an increase in government purchases financed entirely through seignorage, in both a classical and a New Keynesian framework, and compare them with those resulting from a more conventional debt-financed stimulus. My findings point to the importance of nominal rigidities in shaping those effects. Under a realistic calibration …Read More
Europe’s Losing Battle For Recovery
Andrews, N. (2014) “Europe’s Losing Battle For Recovery“, Evergreen Gavekal, Daily The wobble in world markets continues, with stock indices across all time zones down steeply in recent sessions. Investors are not only realigning their exposure in anticipation of tighter liquidity conditions as the US Federal Reserve finally brings its asset purchases to a close later this month. After today’s European Central Bank (ECB) meeting they are also looking …Read More
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
Debt Rattle Oct 1 2014: Europe Is Crumbling Into Collapse
Ilargi Meijer, Ρ. (2014) “Debt Rattle Oct 1 2014: Europe Is Crumbling Into Collapse“, The Automatic Earth, 01 Οκτωβρίου. For me, the quote of the day is this one: “If there’s a periphery of the eurozone’s periphery, that’s Naples.”. The city of Napoli hosts ECB boss Mario Draghi and the heads of Europe’s central banks this week in some very posh former Bourbon family royal palace, and the contradictions …Read More
Βιβλιοθήκη » EE » Οικονομία » Πολιτική » Άρθρα Γνώμης
Why Italy Will Not Make It
Orsi, R. (2014) “Why Italy Will Not Make It“, LSE EUROPP, Eurocrisis in the Press, 01 Οκτωβρίου. Three articles by prestigious commentators (Ambrose Evans-Pritchard and Roger Bootle for The Telegraph, Wolfgang Münchau for Financial Times) have recently appeared in the financial press about the economic situation of Italy and the (in)stability of its national debt. The arguments and wording of these pieces deserve special attention, as their appearance may …Read More
World Economic Outlook (WEO) Legacies, Clouds, Uncertainties
IMF (2014) “World Economic Outlook (WEO) Legacies, Clouds, Uncertainties“, International Monetary Fund Publications, Οκτώβριος. Chapter 3: Is It Time for an Infrastructure Push? Τhe Macroeconomic Effects of Public Investment This chapter finds that increased public infrastructure investment raises output in both the short and long term, particularly during periods of economic slack and when investment efficiency is high. This suggests that in countries with infrastructure needs, the time is …Read More
Re-discovering the Phillips curve
Andor, L. (2014) “Re-discovering the Phillips curve“, VoxEU Organisation, 01 Οκτωβρίου. Negative real interest rates imply redistribution from savers to debtors. This column, by the EU Commissioner for Employment, Social Affairs and Inclusion, argues that such redistribution would benefit the whole economy. It would strengthen aggregate demand – including investment demand – at time when such a boost is clearly needed. As a contribution to the EU’s institutional transition, …Read More
Modelling sticky prices and the effect of monetary shocks
Alvarez, F., Le Bihan, H. & Lippi, F. (2014) “Modelling sticky prices and the effect of monetary shocks“, VoxEU Organisation, 30 Σεπτεμβρίου. The assumption of sticky prices is central in understanding the effect of monetary policies on the economy. Yet, how to best model price stickiness is an unresolved issue. This column assesses a selection of models that are able to reproduce cross-sectional heterogeneity in the setting of prices. …Read More
The Eurozone’s Unresolved Situation – Can market forces prevail in the Eurozone?
Tavares, E. (2014) “The Eurozone’s Unresolved Situation – Can market forces prevail in the Eurozone?“, ΘZeroHedge, 28 Σεπτεμβρίου. With another round of central bank intervention coming four plus years after the start of the Eurozone debt crisis, this is a question worth considering, at a time when the Southern Eurozone members – Italy, Spain, Greece and Portugal, which collectively account for over 30% of the GDP of the early …Read More
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Small business productivity and access to financing
Krishnan, K., Nandy, D. & Puri, M. (2014) “Small business productivity and access to financing“, VoxEU Organisation, 26 Σεπτεμβρίου. The greater access to capital could increase small firms’ investment efficiency. Others argue that it may result in wasteful expenditures. This column discusses how small firms were affected by the Interstate Banking and Branching Efficiency Act of 1994, which allowed interstate banking. The authors find an increase in the productivity …Read More
The 2014 Stability and Convergence Programmes: An Overview
European Commission (2014) “The 2014 Stability and Convergence Programmes: An Overview“, European Economy, Occasional Papers. 199. Ιούλιος 2014: Brussels. This paper provides an overview of Member States’ 2014 Stability and Convergence Programmes (SCPs), with a focus on fiscal consolidation plans over 2013-2017. It serves as background for the examination of the SCPs against the requirements of the Stability and Growth Pact – both the corrective and the preventive arm – …Read More