Horne, P. (2014) “The Euro at Age 15 – Is it a Reserve Currency Yet?”, The European Institute, Φεβρουάριος 2014. The euro was welcomed at birth on Jan. 1, 1999, as a new financial currency (coins and banknotes were issued three years later) and hoped by its promoters to be an alternative to the dollar, which had reigned as the world’s primary reserve currency since the 1944 Bretton Woods agreement. …Read More
If Scotland, why not Greece?
Βαρουφάκης, Γ. (2014) “If Scotland, why not Greece?“, Yannis Varoufakis Thoughts for the post-2008 World, 10 Μαρτίου Why an independent Scotland should get out of sterling, but Greece should not volunteer to exit the Eurozone Scotland should state its intention to decouple from sterling, once independent, rather than petitioning for a continuation of its subservient role in an asymmetrical sterling union. Or so I argued in the Scottish Times in ‘Scotland …Read More
Emerging economies respond to market pressure
Bank for International Settlements (BIS), “International Banking and Financial Market Developments”, Quarterly Review, Μάρτιος 2014. The retrenchment from emerging market economies resumed in full force around the turn of the year, as their subdued growth outlook continued to diverge from the optimistic sentiment in mature markets and as US monetary policy reduced the flow of easy money. Investors were also unsettled by signs of economic weakening and growing financial risks …Read More
What Makes Greece Special?
Gros, N., (2014), “What Makes Greece Special?”, Project Syndicate, 6 Μαρτίου. The euro crisis seems to be largely over. Risk premiums continue to fall across the board, and two countries – Ireland and Portugal – have already exited their adjustment programs. They can now finance themselves in the market, and their economies seem to have started growing again. By contrast, Greece is still having problems fulfilling the goals of its adjustment program and …Read More
Tectonic shifts – banking union is a long-term process that will dramatically reshape Europe’s financial system
Veron, N., (2014), “Tectonic shifts – banking union is a long-term process that will dramatically reshape Europe’s financial system”, Bruegel, 7 Μαρτίου. On June 29, 2012, the leaders of euro area countries set in motion what is now universally known as European banking union, or the transfer of banking policy from the national to the European level. The first step, the empowerment of the European Central Bank as the new …Read More
Options for Europe – Part 40
Mitchell, B., (2014), “Options for Europe – Part 40”, bilbo.economicoutlook.net, 6 Μαρτίου. The Christophersen Report of August 1990, which expressed the European Commission’s own viewpoint on how economic and fiscal policies might be coordinated, concluded that there “does not need to be a single economic policy in the same way as for monetary policy, and correspondingly there is not the same need for institutional change” (European Commission, 1990: 21). They …Read More
Redistribution, inequality, and the sustainable growth: Reconsidering the evidence
Ostry, J., Berg, A. Tsangarides, C., (2014), “Redistribution, inequality, and the sustainable growth: Reconsidering the evidence”, Voxeu.org, 6 Μαρτίου. Inequality has the potential to undermine growth. However, greater redistribution requires higher tax rates, which reduce incentives to work and save. Moreover, the evidence that inequality is bad for growth might simply reflect the fact that more unequal societies choose to redistribute more, and those efforts are antithetical to growth. This …Read More
Euro Area – Deflation Versus Lowflation
Moqhadam, R., Teja, R. and Berkmen P., (2014), “Euro Area – Deflation Versus Lowflation”, iMFdirect Blog, 4 Μαρτίου. Recent talk about deflation in the euro area has evoked two kinds of reactions. On one side are those who worry about the associated prospect of prolonged recession. On the other are those who see the risk as overblown. This blog and the video below sift through both sides of the debate to argue …Read More
European Central Bank accountability: how the monetary dialogue could be improved
Claeys, G., Hallerberg, M. and Tschekassin, O. (2014), “European Central Bank accountability: how the monetary dialogue could be improved”, Bruegel, 3 Μαρτίου. According to the European Union Treaties, the European Central Bank (ECB) is accountable to the European Parliament. In practice, this accountability takes mainly the form of a quarterly Monetary Dialogue between the president of the ECB and the European Parliament Economic and Monetary Affairs committee. We assess the …Read More
What you should know about Greece’s present state of affairs an update
Varoufakis, Y., (2014), “What you should know about Greece’s present state of affairs an update”, yanisvaroufakis.eu, 4 Μαρτίου. “It takes a passionate disregard for the truth to suggest that Greece is recovering.” That was my verdict last December upon being asked to comment on Greece’s rumoured recovery. Almost three months later, it is time for an update. The gist of today’s update is depressingly simple: Still, no sign of Greek-covery whatsoever. Indeed, every …Read More