Lof, Μ. & Malinen, Τ. (2014) “Determinants of the growth and sovereign debt correlation“, VoxEU Organisation, 25 Μαΐου. Public debt and economic growth are historically negatively correlated. This column discusses new evidence that rejects the debt-to-growth causality. After estimating the effects between debt and growth in both directions, there is no evidence that high indebtedness suppresses economic growth. The effect of growth on debt is the main driver of …Read More
Disappearing government bond spreads in the eurozone – Back to normal?
De Grauwe, P. & Ji, Y. (2014) “Disappearing government bond spreads in the eurozone – Back to normal?“, Economic Policy, CEPS Working Documents, 14 Μαΐου. Since the announcement of the Outright Monetary Transactions (OMT) programme by Mario Draghi, President of the ECB, in 2012, the government bond spreads began a strong decline. This paper finds that most of this decline is due to the positive market sentiments that the …Read More
For economies, age is not just a number
Onder, H. & Pestieau, P. (2014) “For economies, age is not just a number“, VoxEU Organisation, 20 Μαΐου. The world’s population is ageing, due to both increasing longevity and decreasing fertility. This column shows that the net effect of ageing on capital accumulation (and therefore growth) depends on which of these two factors dominates, and also on the structure of the pension system. Under a pension system with defined …Read More
Sources and legitimacy of financial liberalization
Burgoon, Β., Demetriades, P. & Underhill, G. R.D. (2012) “Sources and legitimacy of financial liberalization“, European Journal of Political Economy, Vol. 28, Issue 2, June 2012, pp. 147-161. This article seeks to clarify how we understand domestic and international sources of globalization and specifically how we explain financial liberalization across countries. The article also develops our understanding of the underlying legitimacy of financial liberalization. We debate e.g. Abiad and …Read More
Βιβλιοθήκη » EE » Οικονομία » Πολιτική » Επιστημονικά Άρθρα
How the euro changed the pattern of international debt flows
Hale, G. & Obstfeld, M. (2014) “How the euro changed the pattern of international debt flows“, VoxEU Organisation, 15 Μαΐου. Large flows of bank lending from core countries in the Eurozone to the periphery lead to large financial imbalances. This column explains what motivated such financial flows. With the advent of the Eurozone, banks in core countries gained relative advantage in lending to the periphery, making such lending very …Read More
Inflation targeting vs price-level targeting: A new survey of theory and empirics
Hatcher, N. & Minford, P. (2014) “Inflation targeting vs price-level targeting: A new survey of theory and empirics“, VoxEU Organisation, 11 Μαΐου. Inflation targeting and price-level targeting have excited economists for decades. This column reviews a survey on the merits of price-level targeting. The latter could potentially help monetary policy deal with the zero bound on nominal interest rates. Such beneficial effects depend on rational expectations and a New …Read More
Multidimensional poverty measurement in Europe: An application of the adjusted headcount approach
Whelan, C., Nolan, B. & Maître, B. (2014) “Multidimensional poverty measurement in Europe: An application of the adjusted headcount approach“, Journal of European Social Policy, Vol. 25, No. 2, 183-197, Μάιος. As awareness of the limitations of relying solely on income to measure poverty has become more widespread, attention has been increasingly focused on multi-dimensional approaches, to the point where the European Union (EU) has adopted a multidimensional poverty …Read More
Βιβλιοθήκη » EE » Κοινωνία » Οικονομία » Επιστημονικά Άρθρα
Exports and Capacity Constraints: A smooth transition regression model for six euro-area countries
Belke, Α., Oeking, Α. & Setzer, R. (2014) “Exports and Capacity Constraints: A smooth transition regression model for six euro-area countries“, Economic Policy, CEPS Working Documents, 06 Μαΐου. The significant gains in export market shares made in a number of vulnerable euro-area crisis countries have not been accompanied by an appropriate improvement in price competitiveness. This paper argues that, under certain conditions, firms consider export activity as a substitute …Read More
The shock routine: economic crisis and the nature of social policy responses
Van Hooren, F., Kaasch, A. & Starke, P. (2014) “The shock routine: economic crisis and the nature of social policy responses“, Journal of European Public Policy, Vol. 21 Issue 4, Taylor and Francis Online, 21 Μαρτίου. The idea that moments of crisis form opportunities for fundamental policy change is widespread in political science and public policy. It is usually associated with historical institutionalism and the notion of ‘critical junctures’. …Read More
Βιβλιοθήκη » EE » Οικονομία » Πολιτική » Επιστημονικά Άρθρα
The two faces of cross-border banking flows: An investigation into the links between global risk, arms-length funding, and internal capital markets
Reinhardt, D. & Riddiough, S. (2014) “The two faces of cross-border banking flows: An investigation into the links between global risk, arms-length funding, and internal capital markets“, VoxEU Organisation, 07 Μαΐου. Cross-border funding between banks collapsed following the bankruptcy of Lehman Brothers, but the withdrawal of funding was not uniform across countries. This column argues that the composition of cross-border bank-to-bank funding can help to explain why. Interbank funding …Read More