Blanchard, Ο., Jaumotte, F. and Loungani, P., (2013), “Unemployment, labour-market flexibility and IMF advice: Moving beyond mantras”, VoxEU, 18 Οκτωβρίου. The state of labour markets in advanced economies remains dismal despite recent signs of growth. This column explains the IMF’s logic behind the advice it provided on labour markets during the Great Recession. It argues that flexibility is crucial both at the micro level, i.e. on worker reallocation, and at …Read More

Jordà,O., Schularick, M. and Taylor, A., (2013), “Sovereigns versus banks: Crises, causes and consequences”, VoxEU, 18 Οκτωβρίου. In the aftermath of the global financial crisis, few would dispute the risks of excessive borrowing. But which debts should one worry about – public or private? This column presents new research on the interplay of public and private debts since 1870 in 17 advanced economies. History demonstrates that excessive private-sector borrowing plays …Read More

Watt, A., (2013), “Bad and Good News on Euro Area Inflation”, Social Europe Journal, 16 Οκτωβρίου. The latest euro area monthly inflation numbers are out and manage to give cause for both gloom and cheer. First the bad news: inflation is too low. The euro area average figure of just 1.1% is a cause for concern because it is so low – only a little over half what the ECB …Read More

Das, S., (2013), “The Return of Europe’s Debt Crisis”, EconoMonitor, 16 Οκτωβρίου. Since mid-2012, the European financial crisis has been in remission, with the symptoms of the underlying disease temporarily suppressed. As treatment is discontinued and drugs lose efficacy, there is a high probability of a relapse. Taking the Waters… A combination of austerity programs, debt write-downs, the European Central Bank’s (“ECB”) commitment to “do whatever it takes” to preserve …Read More

Kean, M., (2013), “Tax policy in (and for) hard times”, VoxEU, 16 Οκτωβρίου. Tax policy, like everything else, has been through tough times since the onset of the crisis. First, tax policy was to stimulate the economy (Heady 2011). Now it is to help consolidate the fiscal position – always with considerable urgency and all in the midst of public anger and disquiet. What state has all this left our …Read More

Schadler, S., (2013), “The IMF and the legacy of the euro crisis”, VoxEU, 15 Οκτωβρίου. The IMF loans to Greece, Ireland and Portugal are considered controversial by some analysts. This column argues that these loans – granted without having agreed on convincing paths to manageable debt levels – constituted a substantial departure from IMF principles. The situation is costly for Europe and, having now permanently changed the principles guiding large …Read More