Johnson, Debra, Turner, Colin, (2015), “European Business”, European Union Series, Routledge publications, 3rd edition, 23 Σεπτεμβρίου The third edition of European Business is published at a time of turbulence in Europe. This uncertainty puts Europe’s unique business environment at risk.The book retains popular pedagogical features to help students make sense of a confusing and complex environment. Σχετικές Αναρτήσεις European Commission, (2013), “European business cycle indicators”, 2nd Quarter 2013.. Aiyar, Shekhar, Barkbu, …Read More
Emerging economy corporate debt: The threat to financial stability
Acharya, Viral, Cecchetti, Stephen, De Gregorio, José, Kalemli-Ozcan, Sebnem, R. Lane, Philip, Panizza, Ugo, (2015), “Emerging economy corporate debt: The threat to financial stability”, Voxeu, 5 Οκτωβρίου Emerging market firms have borrowed in foreign currency to take advantage of low interest rates. This column argues that when the Fed inevitably raises rates, such borrowing will be a threat to emerging economy financial systems. Yet so long as authorities use their existing prudential tools wisely, the risks appear manageable. Σχετικές Αναρτήσεις Boughton, …Read More
Emerging Market Corporate Debt in Foreign Currencies
Elekdag, Selim, Gelos, Gaston, (2015), “Emerging Market Corporate Debt in Foreign Currencies”, IMF Direct, 1 Οκτωβρίου Debt held by firms in emerging market economies in a currency other than their own poses extra complications these days. When the U.S. Fed does eventually raise interest rates, the accompanying further strengthening of the U.S. dollar will mean an emerging market’s own currency will depreciate against the higher value of the U.S. dollar, …Read More
The sticky superpower
Economist, (2015), “The sticky superpower”, Special Report, 3 Οκτωβρίου IN JUNE THIS year Jack Ma, the founder of Alibaba, a giant Chinese e-commerce firm, addressed the Economic Club of New York, whose members include many Manhattan luminaries and Wall Street chiefs. Mr Ma’s message was that his company exists for the long-term good of society, a far cry from the creed of shareholder value followed by many in the room. …Read More
Commission eyes pragmatic steps towards Capital Markets Union
Ruparel, Raoul, (2015), “Commission eyes pragmatic steps towards Capital Markets Union”, Open Europe, 30 Σεπτεμβρίου The European Commission has today released its detailed “Action Plan” for the creation of a Capital Markets Union (CMU). Open Europe’s Raoul Ruparel assess what is and what is not included in the plans. Σχετικές Αναρτήσεις Wolff, Guntram and Veron Nicolas, (2015) “Capital Markets Union: a vision for the long term”, 24 Απριλίου. Louri-Dendrinou, Ε. …Read More
Measuring the interest premium for past default
AV Catão, Luis, C. Mano, Rui, (2015), “Measuring the interest premium for past default”, Voxeu, 29 Σεπτεμβρίου Sovereign governments re-entering capital markets after debt renegotiations pay an interest rate premium for past defaults. This column presents new evidence that suggests earlier studies have underestimated this premium. This is partly due to the narrow credit history indicators used in previous studies as well as the narrow data coverage. Correcting for these problems, a sizeable …Read More
Strengthening the beating heart of the European economy
Harbour, Malcolm, (2015), “Strengthening the beating heart of the European economy”, European Policy Centre Publications, 29 Σεπτεμβρίου In an atmosphere of crisis, distrust and fragmentation, policy-makers in Brussels are mostly focused on fighting fire without having an ambitious vision for the future – in effect, muddling through, as has been the characteristic response in recent years. However, by remaining in crisis response mode, the European Union (EU) is failing to provide …Read More
The political economy of liberal democracy
Mukand, Sharun, Rodrik, Dani, (2015), “The political economy of liberal democracy“, Voxeu, 29 Σεπτεμβρίου There are more democracies in the world than non-democracies, but few of the democracies go beyond electoral competition. This column highlights the contrast between electoral democracies and liberal ones, that is, those that protect civil rights in addition to political and property rights. Liberal democracies are rare because the failure to protect minority rights is a common consequence of the …Read More
The BRICS Fallacy
Palacio, Ana, (2015), “The BRICS Fallacy”, Project Syndicate, 29 Σεπτεμβρίου The recent downgrade of Brazil’s credit rating to junk status was followed by a raft of articles heralding the crumbling of the BRICS (Brazil, Russia, India, China, and South Africa). How predictable: schadenfreude almost always follows bad news about the BRICS, whose members were once hailed as the world’s up-and-coming economic powerhouses and next major political force. Σχετικές Αναρτήσεις Παπανικολάου, …Read More
Low interest rates, capital flows, and declining productivity in South Europe
Gopinath, Gita, Kalemli-Ozcan, Sebnem, Karabarbounis, Loukas, Villegas-Sanchez, Carolina, (2015), “Low interest rates, capital flows, and declining productivity in South Europe”, Voxeu, 28 Σεπτεμβρίου Joining the Eurozone was once a near unquestionably good idea. Now, the costs of joining the monetary union are under close scrutiny. This column takes a slightly different tack, presenting an alternative perspective on how joining the euro has impacted productivity in southern Europe. It turns out that capital wasn’t allocated efficiently across firms …Read More