Xifré, R. (2014) “No miracles in southern Eurozone without resource reallocation“, VoxEU Organisation, 12 Σεπτεμβρίου.   As the most acute phase of the Eurozone crisis is over, the current-account balances of France, Italy, and Spain have improved. This column warns against complacency about this improvement, pointing at some structural factors that impede growth and damage competitiveness. Resources should be relocated towards the tradeable sectors and to those firms most prepared …Read More

Miller, Μ. & Zhang, L. (2014) “To exit the Great Recession, central banks must adapt their policies and models“, VoxEU Organisation, 10 Σεπτεμβρίου.   During the Great Moderation, inflation targeting with some form of Taylor rule became the norm at central banks. This column argues that the Global Crisis called for a new approach, and that the divergence in macroeconomic performance since then between the US and the UK on …Read More

Koo, R. (2014) “Fixing the Eurozone“, The European Magazine, 03 Σεπτεμβρίου.   The fact that key economies are currently saving instead of borrowing shows how detached the euro zone has become from the wisdom of conventional economics. Yet there is hope. I have been warning since my first English book, Balance Sheet Recession, that if the U.S., Japan and Europe faced balance sheet recessions, Europe would have the most difficult …Read More

Mody, A. (2014) “The OMT’s fragile foundations“, VoxEU Organisation, 09 Σεπτεμβρίου.   Earlier this year, the German constitutional court declared the OMT programme to be inconsistent with EU’s law. This column reviews the legal framework and economic foundation of the OMT. Without any changes in the political structure, the OMT invokes moral hazard in the actions of the member states and unfairness in the distributing the burden of distress. Earlier …Read More

Janssen, R. (2014) “Quantitative Easing Or Business Easing In Europe?“, Social Europe Journal, 08 Σεπτεμβρίου.   A political “consensus” is at this moment being forged in the Euro Area around a policy mix where the ECB would go for some form of, yet undefined, quantitative easing and this in exchange for radical structural reforms. To push this view through, it seems as if anything is allowed. A rather hallucinating illustration …Read More

Schweiger, C. (2014) “Juncker, Tusk, Mogherini and the EU’s credibility crisis“, Ideas on Europe Blog, 07 Σεπτεμβρίου.   After months of public wrangling and backroom discussions over the selection of the candidates for the vacancies of key institutional posts the EU is now finally in a position to address its mounting internal and external challenges with a new guard of official representatives. The selection process itself resembled very much the …Read More

Merler, S. (2014) “Super Mario: 1up? – the ECB cuts the three reference rates and introduces a private asset purchase programme“, Bruegel Think Tank, 05 Σεπτεμβρίου.   The stake at this month’s meeting of the ECB’s Governing Council was exceptionally high. Mario Draghi himself raised the bar of expectations, with his intervention at Jackson Hole. That speech marked a significant change in his language, on a number of important dimensions. …Read More