Gros, Daniel, (2013), “EZ banking union with a sovereign virus”, www.voxeu.org, 14 Ιουνίου. The doom-loop between banks and the national governments played a dominant role in the Eurozone crisis for Ireland and Cyprus. A Eurozone banking union is usually viewed as the solution. This column argues that the doom-loop cannot be undone as long as banks hold oversized amounts of their government’s debt. A simple solution would be to apply …Read More

De Grauwe, Paul, Ji, Yuemei, (2013), “Fiscal implications of the ECB’s bond-buying programme”, www.voxeu.org, 14 Ιουνίου. The monetary-fiscal policy connection is under scrutiny by the German Constitutional Court in the context of the ECB’s OMT bond-buying programme. This column argues that most analyses are deeply flawed by the misapplication of private-company default principles to the central bank. ECB bond-buying transforms public bonds into monetary base, and sovereign-default risk into inflation …Read More

Coutinho, Leonor, (2013), “Capital Controls in Cyprus; Shooting at a moving target”, Ceps, Ceps Commentaries in Economic Policy, 14 Ιουνίου. In her examination of the capital controls that have been in place in Cyprus since March 27th, Leonor Coutinho asks how soon can they be lifted and whether the recapitalisation plans will be sufficiently convincing to allow the Cypriot banking sector to regain the trust of the public.

Gros, Daniel, (2013), “Combating Youth Unemployment: The latest European fad?”, CEPS, Ceps Commentaries in Economic Policy, 14 Ιουνίου. When examining youth unemployment in the broader context of its contribution to total unemployment in Europe, Daniel Gros finds in this new Commentary that the problem reveals a completely different picture from the one usually presented.  Extreme figures on youth unemployment in the periphery hide the fact that the number of actually …Read More