Ozlem Onaran, Thomas Obst, (2016), “Wage-led growth in the EU15 member-states: the effects of income distribution on growth, investment, trade balance and inflation”, Camb. J. Econ. 2016 This paper estimates a multi-country demand-led growth model for the EU15. A decrease in the share of wages in national income in isolation leads to lower growth in Finland, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom, …Read More
Government monetary and fiscal operations: generalising the endogenous money approach
Tymoigne, Eric, (2016), “Government monetary and fiscal operations: generalising the endogenous money approach”, Cambidge Journal of Economics, Μάιος The traditional endogenous money approach can be generalised substantially by including the insights of Modern Money Theory regarding the necessary coordination of fiscal and monetary policies. A monetarily sovereign government is composed of two entities involved in the issuance and redemption of government monetary instruments. As such, one should include the role …Read More
The Euro: A Political Failure and an Economic Disaster
Jespersen, Jesper, (2016), “The Euro: A Political Failure and an Economic Disaster”, International Journal of Political Economy, 29 Απριλίου Alain Parguez is right when he claims that the “euro” is a political failure and an economic disaster, in which French politicians and economists seem to have played a significant role. France’s elite envisaged being a dominant political power on the Continent after the two military defeats of Germany in 1918 and 1945. …Read More
Strategic fiscal policies and leadership in a monetary union
Chortareas, Georgios, Mavrodimitrakis, Christos, (2016), “Strategic fiscal policies and leadership in a monetary union”, European Journal of Political Economy, 30 Απριλίου We consider the strategic interactions between fiscal and monetary policies in a monetary union when a fiscal authority enjoys a strategic advantage. In particular we depart from the standard literature on strategic interactions in monetary unions in that we solve a three-stage game, where the two national fiscal authorities do not play simultaneously. …Read More
From transparency to ambiguity: the impact of the ECB’s unconventional policies on the EMU
Krampf, Arie, (2016), “From transparency to ambiguity: the impact of the ECB’s unconventional policies on the EMU”, Journal of European Integration, 17 Μαρτίου There is no disagreement that during the crisis the EMU has gone through an institutional change. However, there is no agreement concerning the type of change and its drivers. This article focuses on the impact of the ECB’s unconventional policies on the EMU at large. The article draws on …Read More
Myths, Mix-ups, and Mishandlings: Understanding the Eurozone Crisis
Storm, Servaas, Naastepad, C.W.M., (2016), “Myths, Mix-ups, and Mishandlings: Understanding the Eurozone Crisis”, International Journal of Political Economy, 29 Απριλίου The Eurozone crisis has been wrongly interpreted as either a crisis of fiscal profligacy or of deteriorating unit-labor cost competitiveness (caused by rigid labor markets), or a combination of both. Based on these diagnoses, crisis countries have been treated with the bitter medicines of fiscal austerity, wage reductions, and labor market deregulation—all in the …Read More
Booms and Banking Crises
Boissay, Frédéric, Collard, Fabrice, Smets, Frank, (2016), “Booms and Banking Crises”, Journal of Political Economy, 4 Μαρτίου Banking crises are rare events that break out in the midst of credit-intensive booms and bring about deep and long-lasting recessions. This paper presents a textbook dynamic stochastic general equilibrium model to explain these phenomena. The model features a nontrivial banking sector, where bank heterogeneity gives rise to an interbank market. Moral hazard and asymmetric information in this …Read More
Economic Theories of Social Order and the Origins of the Euro
Parguez, Alain, (2016), “Economic Theories of Social Order and the Origins of the Euro”, International Journal of Political Economy, 29 Απριλίου This paper explores how the Euro project became a reality as a result of conflicting political and economic forces. The idea was born in the interwar period in France, among a circle of Traditionalist elites and conservative intellectuals, politicians, and businessmen. They dreamed of restoring an allegedly genuine social order that …Read More
The euro trilemma, or: how the Eurozone fell into a neofunctionalist legitimacy trap
Zimmermann, Hubert, (2016), “The euro trilemma, or: how the Eurozone fell into a neofunctionalist legitimacy trap”, Journal of European Integration, 19 Φεβρουαρίου The Euro-Crisis can be explained by the calamitous interaction of two neofunctionalist logics operating in the Eurozone since its inception: first, a logic of irreversible enlargement, and second, a logic of continuous deepening. The logic of enlargement perpetuates greater divergence among the members of the Eurozone, not only with respect …Read More
Key drivers of EU budget allocation: Does power matter?
Zaporozhets, Vera, García-Valiñas, María, Kurz, Sascha, (2016), “Key drivers of EU budget allocation: Does power matter?”, European Journal of Political Economy, Μάιος We examine the determinants of the EU budget allocation among Member States. In line with the analysis by Kauppi and Widgrén (2004) we test two alternative explanations: political power vs. “needs view” . To do so, we extend the original data set (1976–2001) up to 2012 and introduce alternative econometric specifications. We …Read More