Chmelar, Al., (2013), “Household Debt and the European Crisis”, ECRI Research Report. The fall in economic output all over Europe since 2008 has had important consequences for household liabilities. Major growth in demand and supply for household credit products has generated an increase in household debt, which contributed to growth rates during the pre-crisis period but – in some countries – became household-debt overhangs and helped inflate asset bubbles. In …Read More
Assessing the Impact and Phasing of Multi-year Fiscal Adjustment: A General Framework
Roaf, J., (2013), “Assessing the Impact and Phasing of Multi-year Fiscal Adjustment: A General Framework”, IMF Working Paper, N.,13/182. This paper provides a general framework to assess the output and debt dynamics of an economy undertaking multi-year fiscal adjustment. The framework allows country-specific assumptions about the magnitude and persistence of fiscal multipliers, hysteresis effects, and endogenous financing costs. In addition to informing macro projections, the framework can also shed light on the …Read More
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End Austerity Now
Blyth, M., (2013), “End Austerity Now”, www.project-syndicate.org, 20 Αυγούστου. In recent weeks, talk about a budding recovery in the eurozone has gained traction, with key indices pointing to expansion in the core countries – data that many are citing as evidence that austerity is finally working. Money-market funds from the United States are returning, albeit cautiously, to resume funding of European bank debt. Even Goldman Sachs is now bullishly piling into European …Read More
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
To end the Eurozone crisis, bury the debt forever
Pâris, P., Wyplosz, Ch., (2013), “To end the Eurozone crisis, bury the debt forever”, www.voxeu.org, 6 Αυγούστου. The Eurozone’s debt crisis is getting worse despite appearances to the contrary. How can we end it? This column presents five major options for reducing crisis countries’ debt. Looking into the details, it seems the only option that is both realistic and effective is for countries to default by selling monetised debt to the …Read More
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
The ECB Grows Up
Eichengreen, B., (2013), “The ECB Grows Up”, www.project-syndicate.org, 9 Αυγούστου. August 2 marked the first anniversary of the European Central Bank’s “outright monetary transactions” program, under which it stands ready to purchase government bonds on the secondary market. The ECB announced OMT in response to last summer’s panicked sales of southern European sovereign debt, which threatened to blow apart the eurozone.
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The role of tax policy in times of fiscal consolidation
Princen, S., Mourre, G., (2013), “The role of tax policy in times of fiscal consolidation”, European Economy, Economic Papers N.502. The paper consists in the proceedings of the workshop organised by the Directorate General for Economic and Financial Affairs held in Brussels on 18 October 2012. Against the background of severe consolidation needs in many EU Member States, the workshop addressed the macroeconomic impact and redistributive effects of consolidation measures on the revenue …Read More
Economic Policy Coordination in the Economic and Monetary Union: From Maastricht via the SGP to the Fiscal Pact
Mortensen, J., (2013), “Economic Policy Coordination in the Economic and Monetary Union: From Maastricht via the SGP to the Fiscal Pact”, CEPS, 14 Αυγούστου. This paper first takes a step backwards with an attempt to situate the recent adoption of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union in the context of discussions on the Stability and Growth Pact (SGP) and the ‘Maastricht criteria’, as …Read More
Sovereign debt and its restructuring framework in the euro area
Mody, Ash., (2013), “Sovereign debt and its restructuring framework in the euro area”, www.bruegel.org, 12 Αυγούστου. To compensate for the inflexibility of fixed exchange rates, the euro area needs flexibility through a system of orderly debt restructuring. With virtually no room for macroeconomic manoeuvring since the crisis onset, fiscal austerity has been the main instrument for achieving reductions in public debt levels; but because austerity also weakens growth, public debt ratios …Read More
Has Austerity Failed in Europe?
Gros, D., (2013), “Has Austerity Failed in Europe?”, www.project-syndicate.org, 14 Αυγούστου. Although many European governments have announced expenditure cuts and tax hikes, their debt/GDP ratios continue to deteriorate. So, if the purpose of austerity was to reduce debt levels, its critics are right: fiscal belt-tightening has failed. But the goal of austerity was not just to stabilize debt ratios.
Βιβλιοθήκη » EE » Οικονομία » Άρθρα Γνώμης
2013 Spillover Report
IMF, (2013), “2013 Spillover Report”, IMF Policy Paper. Five years after the global financial crisis, the severe tensions and risks rooted last year in some of the “Systemic five” (S5)—China, euro area, Japan, United Kingdom, United States––have abated but all five are still operating below potential, i.e., they are not contributing to global activity as much as they might: if they could somehow close their output gaps, global output would …Read More