Blanchard, O., Griffiths, M. and Gruss, B., (2013), “Boom, Bust, Recovery: Forensics of the Latvia Crisis”, Final Conference Draft, Fall 2013 Brookings Panel on Economic Activity, 19-20 Σεπτεμβρίου. Latvia is a small country, with a population of only 2 million. Yet, it has been an object of intense attention during the crisis. Against the recommendations of many economists, it decided to maintain its peg and adjust through internal devaluation and …Read More

Woo, J., Bova, E., Kinda, T. and Zhang, S., (2013), “Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy: What Do the Data Say?”, IMF Working Papers Series, WP/13/195, Σεπτέμβριος. The 2007-09 Great Recession has led to an unprecedented increase in public debt in many countries, triggering substantial fiscal adjustments. What are the distributional consequences of fiscal austerity measures? This is an important policy question. This paper analyzes …Read More

Kirkegaard, J.F., (2013), “Economic Reforms in the Euro Area: Fiscal and Macro-structural Challenges”, European Parliament’s Committee on Economic and Monetary Affairs, Σεπτέμβριος. This paper highlights how recent successful stabilization efforts in the euro area have shifted the main policy challenge from “acute crisis management” to fighting chronic stagnation. Critical policy challenges concerning euro area financial sector reforms and the upcoming banking sector balancesheet assessment and stress test, as well as …Read More

Ciccarelli, M., Maddaloni, Ang., Peydró, J-L., (2013), “Heterogeneous transmission mechanism: monetary policy and financial fragility in the Eurozone”, Economic Policy, Vol. 28, Issue 75, pp. 459-512. The eurozone economic activity and banking sector have shown substantial fragility over the last years with remarkable country heterogeneity. Using detailed data on lending conditions and standards, we analyse – along several key dimensions of heterogeneity – how financial fragility has affected the transmission …Read More

Fernández-Villaverde, J., Garicano, L., Santos, T., (2013) “Political Credit Cycles: The Case of the Eurozone”, Journal of Economic Perspectives, Vol. 27, N3, pp. 145-66. We study the mechanisms through which the entry into the euro delayed, rather than advanced, key economic reforms in the eurozone periphery and led to the deterioration of important institutions in these countries. We show that the abandonment of the reform process and the institutional deterioration, …Read More

Zettelmeyer, J., Trebesch, Chr., Gulati, M., “The Greek debt restructuring: an autopsy”, Vol., 28, Issue 75, pages 513–563. The Greek debt restructuring of 2012 stands out in the history of sovereign defaults. It achieved very large debt relief – over 50% of 2012 GDP – with minimal financial disruption, using a combination of new legal techniques, exceptionally large cash incentives, and official sector pressure on key creditors. But it did so …Read More

Bargain, Ol., Dolls, M., Fuest, Cl., Neumann, D.,  Peichl, Andr., Pestel, N., Siegloch, S., (2013), “Fiscal union in Europe? Redistributive and stabilizing effects of a European tax-benefit system and fiscal equalization mechanism”,  Economic Policy, Vol. 28, Issue 75, pp. 375–422. The current debt crisis has given rise to a debate concerning deeper fiscal integration in Europe. The view is widespread that moving towards a ‘fiscal union’ would have stabilizing effects …Read More

Rueda-Cantuche, J. M., Sousa, N., Andreoni, V., Arto, I. (2013), “The Single Market as an Engine for Employment through External Trade”,  Journal of Common Market Studies, Vol. 51, Issue 5, pp: 931–947. This article quantifies for the first time the European employment effects of extra-EU exports and the correct number of jobs generated through the intra-EU trade (single market) associated with the production of such exports. The literature has neglected …Read More