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Forward Guidance: Perspectives from Central Bankers, Scholars and Market Participants

Den Haan, W. ed., (2013), Forward Guidance: Perspectives from Central Bankers, Scholars and Market Participants – A VoxEU.org eBook, London: Centre for Economic Policy Research. Forward guidance is the provision of information by central banks about the future conduct of monetary policy and in particular about the central bank’s policy interest rate. Forward guidance is aimed at influencing the public’s expectations. This goal is not new. It has long been …Read More

Optimism about an end to the euro crisis is wrong

Münchau, W., (2013), “Optimism about an end to the euro crisis is wrong”, The Financial Times, 27 Οκτωβρίου. Adjustment is the key to ending the eurozone crisis. The optimists are saying that this process of regaining competitiveness is now taking place. Look at the success of the Spanish export sector or the fall in Greek wages. And, in any case, the eurozone economy is rebounding, which helps further. This judgment …Read More

Breakup Is Not A Solution to the Eurozone Crisis

Hacker, B., (2013), “Breakup Is Not A Solution to the Eurozone Crisis”, Social Europe Journal, 25 Οκτωβρίου. The unexpectedly high level of support for the new party “Alternative für Deutschland” (AFD) in the general elections in Germany puts their central program point back on the agenda of the political debate. Parties proposing a dissolving of the common currency might gain ground prior to the European Elections in 2014. But the …Read More

Why are Neo-liberal ideas so resilient?

Schmidt, V. and Thatcher, M., (2003), “Why are Neo-liberal ideas so resilient?”, Policy Network , 24 Οκτωβρίου. Given the abject failure of the Neo-liberal policy offer, why has it persisted as the dominant approach to European policymaking and is there any way out? Despite the economic crisis that hit the US and Europe full force in 2008, political leaders have made little attempt to rethink the neo-liberal ideas that are …Read More

Austerity and Growth: Dispelling Confusion with Some Facts

Tamborini, R., (2013), “Austerity and Growth: Dispelling Confusion with Some Facts”, EconoMonitor, 24 Οκτωβρίου. A lot of confusion surrounds the quarrel about austerity and growth in and among the Euro-countries. Confusion helps neither the assessment of the current policies nor the choice of the correct ones. Critics of austerity argue that it is mainly responsible for the extent and persistence of low or negative growth rates after the Great Recession …Read More

Massacre memories: German car sales and the EZ Crisis in Greece

Fouka, V. and Voth, H.J., (2013), “Massacre memories: German car sales and the EZ Crisis in Greece”, VoxEU, 23 Οκτωβρίου. The EZ crisis increased north-south conflicts between bailout providers and recipients – especially between Germany and Greece. This column shows evidence that political conflict directly translated into losses of market share for German car producers in Greece – especially in areas where German armed forces committed massacres during World War …Read More

A Strategy for Southern Europe

LSE, (2013), A Strategy for Southern Europe, London: LSE !deas. Over the last five years Southern Europe has experienced widespread economic, political and social upheaval of almost existential proportion. Greece, Italy, Spain and Portugal, stricken by the Eurozone crisis and the aftershocks of the Arab Spring, face uncertain futures. This report examines the challenges confronting Southern Europe and seeks to explore the potential benefits the countries of the region could …Read More

European Public Opinion: Is this the end of pessimism?

Zalc, J., (2013), “European Public Opinion: Is this the end of pessimism?”, Fondation Robert Schuman, Policy Paper No 290, Οκτώβριος. After many long years of crisis during which the state of European public opinion has deteriorated, notably regarding its support of the Union and its institutions there are now some signs which seem to indicate that things are picking up. At a time when economic forecasts for 2014 give reason …Read More

Fiscal consolidations and spillovers in the Euro are periphery and core

In’t Veld, Y., (2013), “Fiscal consolidations and spillovers in the Euro are periphery and core”, European Commission, Directorate-General for Economic and Financial Affairs, Economic Papers 506, Οκτώβριος. This paper uses a structural multi-country model to assess the impact of fiscal consolidation measures undertaken in 2011-13 in the EA periphery and core. The simulations assume ‘crisis’ conditions prevailing (high share of constrained households, ZLB). The GDP effects depend crucially on the …Read More

Europe’s Flight from Futility

Vedrine, H., (2013), “Europe’s Flight from Futility”, Project Syndicate, 22 Οκτωβρίου. In the next 25 years, Europe’s share of the world population and global GDP is expected to fall considerably. Does that mean that a weakened Europe will fall prey to the rising powers of 2040? Given that Europe’s prospects are highly dependent on external factors, any speculation about its future must account for global conditions. One thing seems certain: …Read More