Franks, Jeffrey, Schölermann, Hanni, (2017), “Drifting Apart: Income Convergence in the Euro Area”, IMF Blog, 13 Σεπτεμβρίου The experience of recent decades has challenged the prediction that the single currency would help differences in income levels across euro area countries narrow over time. This income convergence among the founding countries of the euro has not happened, prompting a need for further economic reforms. While newer members of the euro have converged, …Read More

Eichengreen, Barry, (2017), “The Euro’s Narrow Path”, (2017), Project Syndicate, 11 Σεπτεμβρίου With Emmanuel Macron’s victory in the French presidential election, and Angela Merkel’s Christian Democratic Union enjoying a comfortable lead in opinion polls ahead o Germany’s general election on September 24, a window has opened for eurozone reform. The euro has always been a Franco-German project. With a dynamic new leader in one country and a fresh popular mandate …Read More

Goncalves Raposo, Ines, Wolff, Guntram B., (2017), “How has banking union changed mergers and acquisitions?”, Bruegel, 13 Σεπτεμβρίου The aim of the banking union was to break the toxic link between banks and states. One way of achieving this is by increasing cross border banking through mergers and acquisitions. This blog shows that little has changed in M&A activity since the banking union was launched. In fact, we seem to be …Read More

Schoenmaker, Dirk, (2017), “Nordea’s move to the Banking Union is no surprise”, Bruegel, 12 Σεπτεμβρίου Scandinavian banking giant is moving to Finland. This is not just a flight from increasing taxes and tighter regulation in its current home, Sweden. Nordea is also moving inside the banking union to find a fiscal backstop large enough to see it through any future crisis. Will this vote of confidence encourage Sweden and Denmark …Read More

Brandolini, Andrea, Carta, Francesca, D’Amuri, Francesco, (2017), “A Feasible Unemployment-Based Shock Absorber for the Euro Area”, Journal of Common Market Studies, 54(5), pp. 1123-1141 Based on theoretical insights, this article identifies the broad characteristics that a shock absorber based on unemployment should have in order to be incentive-compatible and politically feasible. It then empirically derives the combination of activation thresholds, experience rating, eligibility criteria and benefit generosity which define the …Read More

Hampl, Mojmir, Havranek, Tomas, (2017), “Headline inflation measures shouldn’t ignore costs of home ownership”, VoxEU, 12 Σεπτεμβρίου Seven out of every ten Europeans live in their own homes, yet Europe’s most important inflation measure excludes the costs associated with owner-occupied housing. This column argues that including the costs of home ownership would prove beneficial to the conduct of monetary and macroprudential policy. It would also bring the measure closer to …Read More

Kregel, Jan, (2017), “A Two-Tier Eurozone or a Euro of Regions? A radical Proposal based on Keynes’ clearing union”, Levy Economics Institute of Bard College, Public Policy Brief No. 144, Σεπτέμβριος In light of the problems besetting the eurozone, this policy brief examines the contributions of John Maynard Keynes and Richard Kahn to early debates over the design of the postwar international financial system. Their critical engagement with the early …Read More