Giavazzi, F. & Tabellini, G. (2014) “How to jumpstart the Eurozone economy“, VoxEU Organisation, 21 Αυγούστου. The stagnating Eurozone economy requires policy action. This column argues that EZ leaders should agree a coordinated 5% tax cut, extension of budget deficit targets by 3 or 4 years, and issuance of long-term public debt to be purchased by the ECB without sterilisation. The mantra is that once again it is up …Read More
How Far Away Is a Single European Labor Market?
Krause, A., Rinne, U. & Zimmermann, F. K. (2014) “How Far Away Is a Single European Labor Market?“, IZA Discussion Paper No. 8383, Αύγουστος. A Single European Labor Market, particularly involving the free movement of workers within Europe, has been a goal of the European community since the 1950s. Whereas it may entail opportunities and drawbacks alike, the benefits –such as greater economic welfare for most citizens– are supposed …Read More
Eurozone has failed – a major shift in direction is needed
Mitchell, B. (2014) “Eurozone has failed – a major shift in direction is needed“, Bill Mitchell Blog, 25 Αυγούστου. The central bankers of the World met at Jackson Hole, Wyoming last week for their annual gathering far from the madding crowd. And as far away from the mess they have helped to create as you could imagine. Out of sight out of mind I guess. The ECB boss felt …Read More
European Economy, Evaluating Fiscal Policy – A Rule of Thumb
Carnot, N. (2014) “European Economy, Evaluating Fiscal Policy – A Rule of Thumb“, European Commission – Economic Papers 526, Αύγουστος. This paper introduces a simple rule for appraising the economic soundness of fiscal policies. It connects fiscal policy to a long-run debt objective, taken as an anchor, while arbitraging symmetrically between this debt objective and output stabilisation. The rule offers a benchmark to assess the evolution of primary expenditure, …Read More
A European Lost Decade?
Heise, M. (2014) “A European Lost Decade?“, Project Syndicate, 22 Αυγούστου. Europe is in a difficult predicament. Inflation has fallen to 0.4%, and economic growth has been anemic for years. Though the European Central Bank has kept interest rates close to zero, private credit growth is stalling and public debt continues to rise. This sounds a lot like Japan’s situation in the 1990s, which culminated in a “lost decade” …Read More
The role of corporate saving in global rebalancing
Bacchetta, P. & Benhima, K. (2014) “The role of corporate saving in global rebalancing“, VoxEU Organisation, 24 Αυγούστου. Among the various explanations behind global imbalances, the role of corporate saving has received relatively little attention. This column argues that corporate saving is quantitatively relevant, and proposes a theory that is consistent with the stylised facts and useful for understanding the current phase of global rebalancing. The theory implies that, …Read More
Secular stagnation: Facts, causes, and cures
Teulings, C. & Baldwin, R. (2014) “Secular stagnation: Facts, causes, and cures“, VoxEU Organisation Books, 15 Αυγούστου. Six years after the Crisis and the recovery is still anaemic despite years of zero interest rates. Is ‘secular stagnation’ to blame? This column introduces an eBook that gathers the views of leading economists including Summers, Krugman, Gordon, Blanchard, Koo, Eichengreen, Caballero, Glaeser, and a dozen others. It is too early to …Read More
Destabilizing a stable crisis: Employment persistence and government intervention in macroeconomics
Lima, B. C., Grasselli, M. R., Wang, X.-S. & Wu, J. (2013) “Destabilizing a stable crisis: Employment persistence and government intervention in macroeconomics“, Structural Change and Economic Dynamics, No. 30 (2014), pp. 30-51. The basic Keen model is a three-dimensional dynamical system describing the time evolution of the wage share, employment rate, and private debt in a closed economy. In the absence of government intervention this system admits, among …Read More
Evaluating the cost of government credit support: the OECD context
Lucas, D. (2014) “Evaluating the cost of government credit support: the OECD context“. Economic Policy, Vol. 29, Issue 79, pp. 553-597. Governments throughout the OECD allocate a large share of societies’ capital and risk through their credit-related activities. Hence, accurate cost estimates for credit support programmes are a prerequisite for efficient resource allocation, transparency, effective management and public oversight. I find that OECD governments generally take their cost of capital …Read More
Οικονομικό Δελτίο – Τεύχος 39
ΤτΕ (2014) “Οικονομικό Δελτίο – Τεύχος 39“, Τράπεζα της Ελλάδος – Ευρωσύστημα, Ιούλιος 2014. Στο 39ο τεύχος δημοσιεύονται οι εξής πέντε μελέτες: Δήµητρα Δηµητροπούλου, Αναστασία Κουτσοµανώλη-Φιλιππάκη, Ευάγγελος Χαραλαµπάκης και Γεώργιος Αγγέλης: «Η χρηματοδότηση των ελληνικών επιχειρήσεων προ και κατά τη διάρκεια της κρίσης» Κώστας Ν. Κανελλόπουλος: «Η αγορά εργασίας στον ιδιωτικό τομέα την περίοδο της κρίσης» Φαίδων Καλφάογλου: «Ευρωπαϊκή Τραπεζική Ένωση: “εξευρωπαϊσμός” του χρηματοοικονομικού πλέγματος ασφαλείας των τραπεζών» Σοφία …Read More