Schäuble, W., (2013), “Ignore the doomsayers: Europe is being fixed”, Financial Times, 16 Σεπτεμβρίου. Τhe world should rejoice at the positive economic signals the eurozone is sending almost continuously these days. While the crisis continues to reverberate, the eurozone is clearly on the mend both structurally and cyclically. What is happening turns out to be pretty much what the proponents of Europe’s cool-headed crisis management predicted. The fiscal and structural …Read More
Five years of financial non-reform
Admati, A., (2013), “Five years of financial non-reform”, Project Syndicate, 13 Σεπτεμβρίου. Five years after the collapse of Lehman Brothers triggered the largest global financial crisis since the Great Depression, outsize banking sectors have left economies shattered in Ireland, Iceland, and Cyprus. Banks in Italy, Spain, and elsewhere are not lending enough. China’s credit binge is turning into a bust. In short, the world’s financial system remains dangerous and dysfunctional. …Read More
How to make Europe’s incipient recovery durable: End policy uncertainty
Buti, M. and Padoan, P.C., (2013), “How to make Europe’s incipient recovery durable: End policy uncertainty”, www.voxeu.org, 12 Σεπτεμβρίου. The Eurozone is recovering but the revival is fragile – ringed by downside risks. This column argues that three steps – reducing policy uncertainty, repairing the financial system, and creating new investment opportunities – are essential. They could switch the negative confidence-growth feedback loop into a positive one, thus paving the …Read More
Spain: The Recession May Be Ending But The Crisis Continues
Hugh, E., (2013), “Spain – The Recession May Be Ending But The Crisis Continues”, www.EconoMonitor.com, 9 Σεπτεμβρίου. My feeling is that it’s totally unrealistic to expect a ‘return to the old reality’. We are now in a change of paradigm process. We all need to change our expectations and find ways to live with the new situation, since whether we like it or not we will have to. There is no …Read More
On the meaning of inflation
The Economist, (2013), “Generations: On the meaning of inflation”, Free Exchange Economics Blog, 11 Σεπτεμβρίου. Inflation, like demand itself, is always and everywhere a monetary phenomenon. Milton Friedman was right about that. But while that’s a useful thing to know it’s not always the answer to the question we’re really asking about macroeconomic troubles. If you ask what America’s main macroeconomic problem is at the moment, one correct answer is …Read More
Is Europe out of the woods?
Eichengreen, B., (2013), “Is Europe out of the woods?”, Project Syndicate, 11 Σεπτεμβρίου. And what happened in Greece would not stay in Greece. Once the process of euro exit had started, there was no telling where it would stop. The general feeling was that the common currency was doomed. CommentsView/Create comment on this paragraphIn fairness, this dark prognosis was not universally embraced. My own favorite recollection of this period is …Read More
End to Crisis ‘Within Sight’ Says Barroso
Norman, L., (2013), “End to Crisis ‘Within Sight’ Says Barroso”, The Wall Street Journal, The Euro Crisis Blog, 11 Σεπτεμβρίου. Europe must move ahead on its banking union project to help the region exit an economic and debt crisis whose end is now “within sight,” the European Union’s top official said Wednesday. In his annual address to the European Parliament, European Commission President José Manuel Barroso said the region has “started …Read More
Countries with higher rates of taxation tend to have happier citizens
Binder, D., (2013), “Countries with higher rates of taxation tend to have happier citizens”, European Politics and Policy Blog, 10 Σεπτεμβρίου. What impact does a country’s level of taxation have on the happiness of its citizens? Using OECD data, David Binder assesses the relationship between high taxation levels and measures of citizen wellbeing/happiness. He finds that there is a correlation between high taxation and increased happiness, but that there are …Read More
Euro-Zone Unemployment Unlikely to Fall Quickly
Billington, I., (2013), “Euro-Zone Unemployment Unlikely to Fall Quickly”, The Wall Street Journal, The Euro Crisis Blog, 10 Σεπτεμβρίου. The euro zone may have emerged from recession this year, but unemployment is unlikely to fall quickly with companies less likely to hire staff in the final three months of the year than they were earlier in 2013, a survey of employers showed Tuesday. The quarterly Manpower Employment Outlook shows that, while there …Read More
Enhancing the global financial safety net through central-bank cooperation
Truman, E.W., (2013), “Enhancing the global financial safety net through central-bank cooperation”, www.voxeu.org, 10 Σεπτεμβρίου. Should we expect more global financial crises? This column argues that we should. Global financial crises are far from being a thing of the past because they are often caused by buildups of excessive domestic and foreign debt. To successfully address them and to limit negative spillovers, we need coordinated actions that prevent a contraction …Read More