Baldwin, Richard et al., (2016), “Making the Eurozone more resilient: What is needed now and what can wait?”, Voxeu, 25 Ιουνίου Britain voted to leave the EU. This is terrible news for the UK, but it is also bad news for the Eurozone. Brexit opens the door to all sorts of shocks, and dangerous political snowball effects. Now is the time to shore up the Eurozone’s resiliency. The situation is …Read More
Gros, Daniel, (2016), “Negative rates and seigniorage: Turning the central bank business model upside down – the special case of the ECB”, Voxeu, 27 Ιουνίου The business of central banks used to be profitable – they issued cash and could invest the proceeds in the assets they liked. This column argues that the ECB has turned the old business model of central banks around. Today, it earns a stream of …Read More
Roth, F., Jonung, L., and Nowak-Lehmann D., F., (2016), “Crisis and Public Support for the Euro, 1990–2014”, Journal of Common Market Studies, 54: 944–960, Ιούλιος This article analyses the evolution of public support for the single European currency, the euro, from 1990 to 2014 for a 12-country sample of the euro area (EA-12), focusing on the most recent period of the financial and sovereign debt crisis, starting in 2008. We …Read More
Nikola Bokan, Andrea Gerali, Sandra Gomes, Pascal Jacquinot, Massimiliano Pisani, (2016), “EAGLE-FLI: A macroeconomic model of banking and financial interdependence in the euro area”, ECB Working Paper 1923, Ιούνιος We incorporate financial linkages in EAGLE, a New Keynesian multi-country dynamic general equilibrium model of the euro area (EA) by including financial frictions and country-specific banking sectors. In this new version of the model, termed EAGLE-FLI (Euro Area and GLobal Economy …Read More
Ryan, John, (2016), “The European Central Bank: A Central Bank Operating In A Democratic Void”, Social Europe, 24 Ιουνίου The ECB is far more independent than the Federal Reserve, whose legal status is far weaker and which is directly accountable to Congress and the government. The ECB was supposed to be like the German central bank, the Bundesbank. It has, however, failed to emulate the distinctive attributes that made the …Read More
Kleis, Mischa, Moessinger, Marc-Daniel, (2016), “The Long-run Effect of Fiscal Consolidation on Economic Growth: Evidence from Quantitative Case Studies“, ZEW Discussion Paper No. 16-047, Ιούνιος We contribute to the literature on the long-run effect of fiscal consolidation on eco- nomic growth by applying a novel method for quantitative case studies. Relying on a qualitative (narrative) definition of fiscal consolidations based on an examination of historical policy documents and using the …Read More
Demertzis, Maria, Wolff, Guntram B., (2016), “The effectiveness of the European Central Bank’s Asset Purchase Programme”, Bruegel, 23 Ιουνίου Central banks resort to quantitative easing when the normal monetary policy tool of low- ering the short-term interest rate is con- strained. This constraint typically arises from the zero-lower bound, ie the reluctance to cut nominal rates below zero. This can result in a real interest rate that, while negative, is …Read More
Christodoulakis, Nicos, Axioglou, Christos, (2016), “Underinvestment and unemployment: the double hazard in the Euro Area”, Bank of Greece, Απρίλιος An alarming legacy of the austerity programs in the euro area is the vast disinvestment that has taken place over the recent years, and especially so in the peripheral economies. Unless it is quickly reversed, disinvestment not only hinders long-term growth but also undermines the prospects of a gradual reduction of unemployment …Read More
Huidrom, Raju, Kose, Ayhan, Lim, Jamus, Ohnsorge, Franziska, (2016), “Do Fiscal Multipliers Depend on Fiscal Positions?”, Centre for Economic Policy Research, Ιούνιος This paper analyzes the relationship between fiscal multipliers and fiscal positions of governments using an Interactive Panel Vector Auto Regression model and a large dataset of advanced and developing economies. Our methodology permits us to trace the endogenous relationship between fiscal multipliers and fiscal positions while maintaining enough degrees of freedom to …Read More
Batsaikhan, Uuriintuya, (2016), “The day after Brexit: what do we know?”, Bruegel, 22 Ιουνίου Article 50 of the Treaty of the European Union (December 2009) sets out the procedural requirements for a member state to terminate its membership. Legal withdrawal would mean that EU Treaties and their Protocols would no longer apply, and EU financial programmes would be phased out. If the UK votes to leave the EU on Thursday, the result …Read More
