Wren-Lewis, S. (2014) “Mario Draghi At Jackson Hole“, Social Europe Journal, 26 Αυγούστου.   To understand the significance of yesterday’s speech (useful extract from FT Alphaville here), it is crucial to know the background. The ECB has appeared to be in the past a centre of what Paul De Grauwe calls balanced-budget fundamentalism. I defined this as a belief that we needed fiscal consolidation (austerity) even when we were in a liquidity trap (i.e. interest rates were …Read More

Davies, H. (2014) “Europe’s Fitful Financial Integration“, Project Syndicate, 25 Αυγούστου.   The well-publicized troubles of Portugal’s Banco Espírito Santo this summer have reminded us that the eurozone’s financial problems are by no means resolved. There are, no doubt, idiosyncratic factors behind the bank’s problems, stemming from its exposure to other parts of the Espírito Santo family’s empire. But when the bank announced a first-half loss of €3.6 billion ($4.7 …Read More

Mitchell, B. (2014) “Eurozone has failed – a major shift in direction is needed“, Bill Mitchell Blog, 25 Αυγούστου.   The central bankers of the World met at Jackson Hole, Wyoming last week for their annual gathering far from the madding crowd. And as far away from the mess they have helped to create as you could imagine. Out of sight out of mind I guess. The ECB boss felt …Read More

Heise, M. (2014) “A European Lost Decade?“, Project Syndicate, 22 Αυγούστου.   Europe is in a difficult predicament. Inflation has fallen to 0.4%, and economic growth has been anemic for years. Though the European Central Bank has kept interest rates close to zero, private credit growth is stalling and public debt continues to rise. This sounds a lot like Japan’s situation in the 1990s, which culminated in a “lost decade” …Read More

Pisani-Ferry, J. (2014) “Can Investment Save Europe?“, Project Syndicate, 30 Ιουλίου.   Economic growth in Europe remains disappointing. Virtually all European Union members are expected to post higher output in 2014; but, according to the International Monetary Fund’s latest projections, the average growth rate in the eurozone will barely exceed 1%. And, whereas the British economy is displaying strong momentum, its GDP has only now surpassed the pre-crisis mark. In …Read More

Hausmann, R. (2014) “The Real Raw Material of Wealth“, Project Syndicate, 26 Ιουλίου.   Poor countries export raw materials such as cocoa, iron ore, and raw diamonds. Rich countries export – often to those same poor countries – more complex products such as chocolate, cars, and jewels. If poor countries want to get rich, they should stop exporting their resources in raw form and concentrate on adding value to them. …Read More

CER (2014) “The EU and an independent Scotland“, Centre for European Reform Blog, 23 Ιουλίου.   Scots living in Scotland vote on September 18th on whether to end their 300-year union with England. If they win, the nationalists aim for actual independence, and full EU membership, in March 2016. Opinion polls currently show a lead for the pro-Union side, but 15 or 20 per cent remain undecided. The debate is …Read More

Terzi, A. (2014) “Europe Must Escape A Savings Trap, Not A Liquidity Trap“, Social Europe Journal, 23 Ιουλίου.   The anti-austerity vote in the European elections reflected two different kinds of discontent. One is a feeling of frustration, which is invigorating nationalism: the vote for “less Europe.” The other is a lack of confidence in current EU policies: the vote for “another Europe.” In both cases, voters  revealed that they …Read More

Solana, J. (2014) “The Gallic Heart of Europe“, Project Syndicate, 22 Ιουλίου.   Europe needs a France that is proud, prosperous, and able to overcome its gloomy suspicions. We need the great country that was and will be – the France that inspired the entire world with its revolution, culture, and values. Alain Peyrefitte, the scholar, politician, and confidant of Charles de Gaulle, said that “without Europe, France will be …Read More

Boskin J. Μ. (2014) “Europe’s Options“, Project Syndicate, 22 Ιουλίου.   Many Europeans have come to believe that they have weathered the economic and financial storm. In the last two years, deficits and debt have stabilized. Yields on the sovereign debt of the eurozone periphery’s weak economies have fallen sharply. Portugal and Ireland have exited their bailout programs. Talk of Greece leaving the euro has subsided. CommentsView/Create comment on this …Read More