Mody, A. (2014) “The OMT’s fragile foundations“, VoxEU Organisation, 09 Σεπτεμβρίου. Earlier this year, the German constitutional court declared the OMT programme to be inconsistent with EU’s law. This column reviews the legal framework and economic foundation of the OMT. Without any changes in the political structure, the OMT invokes moral hazard in the actions of the member states and unfairness in the distributing the burden of distress. Earlier …Read More
The IMF and Sovereign Debt
Joyce, P. J. (2014) “The IMF and Sovereign Debt“, Economonitor–A Roubini Global Economics Project, 09 Σεπτεμβρίου. The continuing inability of the Eurozone economies to break out of their current impasse means that any optimistic projections of declining debt to GDP ratios are unlikely to be achieved. As long as European governments continue to raise funds in the financial markets on favorable terms, the current situation remains sustainable. But the …Read More
Why does Italy not grow? – The Italian economy has barely grown since it joined the euro area in 1999
Mody, Α. & Riley, Ε. (2014) “Why does Italy not grow? – The Italian economy has barely grown since it joined the euro area in 1999“, Bruegel Institute, 09 Σεπτεμβρίου. In April this year, the Italian debt-to-GDP ratio was expected to peak by year-end at 135 percent of GDP. That projection assumed a real GDP growth rate of 0.6 percent and inflation of about 0.7 percent. The projected decline …Read More
Έρευνα για τις Προοπτικές Απασχόλησης στην Ελλάδα, Q4/2014
Manpower (2014) Έρευνα για τις Προοπτικές Απασχόλησης στην Ελλάδα, Q4/2014, ManpowerGroup: Αθήνα. Η Έρευνα της Manpower για τις Προοπτικές Απασχόλησης κατά το Δ’ Τρίμηνο του 2014 στην Ελλάδα πραγματοποιήθηκε μέσω συνεντεύξεων σε αντιπροσωπευτικό δείγμα 753 εργοδοτών. Όλοι οι συμμετέχοντες απάντησαν στην εξής ερώτηση: «Ποια πιστεύετε ότι θα είναι η μεταβολή στον συνολικό αριθμό των ατόμων που απασχολούνται στον οργανισμό σας, στην περιοχή ευθύνης σας, κατά τους τρεις επόμενους μήνες, …Read More
The 13th Labour of Hercules: Inside the Greek Crisis
Palaiologos, Y. (2014) The 13th Labour of Hercules: Inside the Greek Crisis, Portobello Books Ltd, 04 Σεπτεμβρίου. Since the revelation of its massive hidden deficit in late 2009, Greece has been at the centre of the world’s attention. Observers around the globe have watched with morbid fascination as the country has repeatedly flirted with political and financial chaos, as one failed rescue programme has followed another, as extremism spread …Read More
Facing Reality in the Eurozone
Turner, Α. (2014) “Facing Reality in the Eurozone“, Project Syndicate, 08 Σεπτεμβρίου. European Central Bank President Mario Draghi’s recent speech at the annual gathering of central bankers in Jackson Hole, Wyoming, has excited great interest, but the implication of his remarks is even more startling than many initially recognized. If a eurozone breakup is to be avoided, escaping from continued recession will require increased fiscal deficits financed with ECB money. …Read More
Quantitative Easing Or Business Easing In Europe?
Janssen, R. (2014) “Quantitative Easing Or Business Easing In Europe?“, Social Europe Journal, 08 Σεπτεμβρίου. A political “consensus” is at this moment being forged in the Euro Area around a policy mix where the ECB would go for some form of, yet undefined, quantitative easing and this in exchange for radical structural reforms. To push this view through, it seems as if anything is allowed. A rather hallucinating illustration …Read More
A ‘sovereign subsidy’ – zero risk weights and sovereign risk spillovers
Korte, J. & Steffen, S. (2014) “A ‘sovereign subsidy’ – zero risk weights and sovereign risk spillovers“, VoxEU Organisation, 07 Σεπτεμβρίου. European banking regulation assigns a risk weight of zero to sovereign debt issued by EU member countries, making it an attractive investment for European banks. This column defines a ‘sovereign subsidy’ as a new measure quantifying to what extent banks are undercapitalised due to the zero risk weights. …Read More
Juncker, Tusk, Mogherini and the EU’s credibility crisis
Schweiger, C. (2014) “Juncker, Tusk, Mogherini and the EU’s credibility crisis“, Ideas on Europe Blog, 07 Σεπτεμβρίου. After months of public wrangling and backroom discussions over the selection of the candidates for the vacancies of key institutional posts the EU is now finally in a position to address its mounting internal and external challenges with a new guard of official representatives. The selection process itself resembled very much the …Read More
Super Mario: 1up? – the ECB cuts the three reference rates and introduces a private asset purchase programme
Merler, S. (2014) “Super Mario: 1up? – the ECB cuts the three reference rates and introduces a private asset purchase programme“, Bruegel Think Tank, 05 Σεπτεμβρίου. The stake at this month’s meeting of the ECB’s Governing Council was exceptionally high. Mario Draghi himself raised the bar of expectations, with his intervention at Jackson Hole. That speech marked a significant change in his language, on a number of important dimensions. …Read More