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Public investment efficiency and growth

Berg, Andrew, Presbitero, Andrea, Felipe Zanna, Luis, (2016), “Public investment efficiency and growth”, Voxeu, 5 Ιανουαρίου What is the growth impact of an increase in the rate of public investment spending? And in particular, how does this depend on the efficiency of public investment spending? These questions have emerged in the debate about the need to bolster public investment to exit a low-growth, high-unemployment conundrum in Europe (e.g. Summers 2014, Teulings and Baldwin 2014, …Read More

Getting eurozone deposit insurance right promises benefits

Wolff, Guntram, (2016), “Getting eurozone deposit insurance right promises benefits”, Bruegel, 5 Ιανουαρίου The European Commission presented its proposals for European deposit insurance last November. Officials hope to stabilise the banking system and decouple banks’ financing costs from the solvency of their host states. This would achieve the original aim of Banking Union: to break the link between states and their banking systems. Σχετικές Αναρτήσεις Gros, Daniel, Belke, Ansgar, (2015), …Read More

Farewell to the vultures? Argentine debt restructuring and bargaining theory

Miller, Marcus, Ghosal, Sayantan, (2016), “Farewell to the vultures? Argentine debt restructuring and bargaining theory”, Voxeu, 8 Ιανουαρίου. Shylock’s insistence in ‘The Merchant of Venice’ that his “pound of flesh” be paid as per the contract, regardless of the extreme and grotesque cost to the debtor, is an apt parallel with vulture funds holding out on Argentinian debt pay-outs. This column assesses the Argentinian debt situation and develops an accord that would …Read More

Capital shares and income inequality: Evidence from the long run

Bengtsson, Erik, Waldenström, Daniel, (2015), “Capital shares and income inequality: Evidence from the long run”, Centre for Economic Policy Research, Δεκέμβριος. This paper investigates the relationship between the capital share in national income and personal income inequality over the long run. Using a new historical cross-country database on capital shares in 19 countries and data from the World Top Income Database, we find strong long-run links between the aggregate role of capital …Read More

Deleveraging, deflation and depreciation in the euro area

Kuvshinov, Dmitry, Müller, Gernot, Wolf, Martin, (2015), “Deleveraging, deflation and depreciation in the euro area”, Centre for Economic Policy Research, Δεκέμβριος. During the post-crisis period, economic performance has been highly heterogenous across the euro area. While some economies rebounded quickly after the 2009 output collapse, others are undergoing a protracted further decline as part of an extensive deleveraging process. At the same time, inflation has been subdued throughout the whole of the euro area and intra-euro-area …Read More

Income changes and their determinants over the lifecycle

Hood, Andrew, Joyce, Robert, (2015), “Income changes and their determinants over the lifecycle”, IFS Working Paper, 21 Δεκεμβρίου. What explains the variation in how income changes as people age? Using household panel data, we investigate the contribution of different time-varying factors in explaining variation in income changes over prime working-age life (between 35-44 and 50-59). We find that demographic changes, such as acquiring or losing a partner and the entry or exit of …Read More

Greece’s Two Currencies

 Varoufakis, Yanis, (2016), “Greece’s Two Currencies”, Social Europe, 8 Ιανουαρίου. Imagine a depositor in the US state of Arizona being permitted to withdraw only small amounts of cash weekly and facing restrictions on how much money he or she could wire to a bank account in California. Such capital controls, if they ever came about, would spell the end of the dollar as a single currency, because such constraints are utterly …Read More

Euro area unemployment rate at 10.5%-EU28 at 9.1%

The euro area (EA19) seasonally-adjusted unemployment rate was 10.5% in November 2015, down from 10.6% in October 2015, and from 11.5% in November 2014. This is the lowest rate recorded in the euro area since October 2011. The EU28 unemployment rate was 9.1% in November 2015, down from 9.2% in October 2015, and from 10.0% in November 2014. This is the lowest rate recorded in the EU28 since July 2009. …Read More

Volume of retail trade down by 0.3% in euro area Up by 0.2% in EU28

Eurostat/November 2015 compared with October 2015/4/2016 -7 January 2016 In November 2015 compared with October 2015, the seasonally adjusted volume of retail trade decreased by 0.3% in the euro area (EA19), while it rose by 0.2% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In October retail trade fell by 0.2% in the euro area and remained stable in the EU28. Σχετικές Αναρτήσεις …Read More

Banking Union as a Shock Absorber: Lessons for the eurozone from the US

Gros, Daniel, Belke, Ansgar, (2015), “Banking Union as a Shock Absorber: Lessons for the eurozone from the US”, CEPS publications, 17 Δεκεμβρίου This book illustrates how the structure of the US banking market and the existence of federal institutions allowed regional financial shocks to be absorbed at the federal level in the US, thus avoiding local financial crisis. The authors argue that the experience of the US shows the importance of …Read More