Batsaikhan Uuriintuya , Kalcik, Robert , Schoenmaker, Dirk , (2017), “Brexit and the European financial system”, Bruegel, 9 Φεβρουαρίου London is an international financial centre, serving European and global clients. A hard Brexit would lead to a partial migration of financial firms from London to the EU27 (EU minus UK) to ensure they can continue to serve their EU27 clients. Four major cities will host most of the new EU27 wholesale …Read More

Sri-Kumar, Komal, (2017), “The Opening for Investors in Europe’s Political Turmoil”, BloombergView, 22 Φεβρουαρίου After a period of relative calm, volatility and investor fear have returned to Europe. Investors took in stride the Brexit vote last June, along with the decision by Italian voters in December to reject Prime Minister Matteo Renzi’s referendum, which led to his resignation. But three national elections this year — in the Netherlands next month, …Read More

Onado, Marco, (2017), “In search of a European solution for banks’ non-performing loans”, VoxEu, 21 Φεβρουαρίου After ten years of crisis, European banks are far from seeing the end of the tunnel. While US banks have recovered fairly quickly and have reached in 2012-15 a return on equity of 9.3%, European banks are still stuck at a meagre 3.7%, well below their cost of capital (IMF 2016). This gap is explained …Read More

McQuaid, Ronald, (2017), “Youth unemployment produces multiple scarring effects”, EUROPP, 18 Φεβρουαρίου There are lots of problems with analysing the causes and effects of such long-term scarring and the reasons for it appear inter-connected. For instance wellbeing and mental health may affect subsequent income and chances of getting and keeping a job, but are themselves influenced by unemployment. Some broad overlapping reasons for scarring include: (1) employer responses, (2) the person’s human …Read More

Καθημερινή, (2017), “20 δισ. ευρώ από Ρώμη για διάσωση τραπεζών”, 17 Φεβρουαρίου Στο πλαίσιο των προσπαθειών που καταβάλλει η Ιταλία για να εξυγιάνει τον τραπεζικό της κλάδο, ο οποίος έχει πληγεί από τα «κόκκινα» δάνεια, η ιταλική Βουλή ενέκρινε κεφάλαιο ύψους 20 δισ. ευρώ για τη διάσωση των προβληματικών χρηματοπιστωτικών ιδρυμάτων της. Σχετικές Αναρτήσεις Καραγιάννης, Κώστας, (2016), “Κρατική διάσωση για την Monte Paschi”, Καθημερινή, 23 Δεκεμβρίου Merler, Silvia, (2016), “An …Read More

Smart, Christopher ,(2017), “The Financial Education of the Eurozone”, Project- Syndicate, 14 Φεβρουαρίου Europe’s banks have long been central to the continent’s economy. In France and Germany, bank assets amount to 350-400% of GDP, whereas in the United States, they are equal to just over 100% of GDP. After the 2008 financial crisis, the eurozone’s weakest banks quickly buckled under the weight of their bad loans, and then threatened to …Read More

Huttl, Pia, (2017), “Inflation’s comeback”, Bruegel, 13 Φεβρουαρίου Before the financial crisis, a standard assumption was that the southern peripheral countries were on a path to converge their income per capita to northern levels, and as such, through Balassa-Samuelson effects (describing how increase in traded-goods-sector productivity in the South bids up the price of non-traded goods there, relative to abroad), experiencing faster inflation. The ‘below, but close to’ 2% target of the …Read More

Janssen, Ronald, (2017, “The Rise Of The “Super Firms” And Inequality”, Social Europe, 9 Φεβρουαρίου Mainstream economic thinking often tries to explain the trend of high and rising inequalities by referring to the forces of technology. Technological progress, so the argument goes, works to destroy middle pay routine jobs while at the same time creating many high skilled jobs. There is, however, increasing recognition that this ‘technology’ factor is but part …Read More

Merler, Sylvia, (2017), “Is Germany a currency manipulator?”, Bruegel, 6 Φεβρουαρίου Paul Krugman argues that Navarro is right and wrong at the same time. Germany in effect has an undervalued currency relative to what it would have without the euro, against its neighbors. This is the result of a large real depreciation during the euro’s good years, which has only been partly reversed, because wages are downward sticky, and Germany …Read More