Wren-Lewis, S. (2014) “Mario Draghi At Jackson Hole“, Social Europe Journal, 26 Αυγούστου. To understand the significance of yesterday’s speech (useful extract from FT Alphaville here), it is crucial to know the background. The ECB has appeared to be in the past a centre of what Paul De Grauwe calls balanced-budget fundamentalism. I defined this as a belief that we needed fiscal consolidation (austerity) even when we were in a liquidity trap (i.e. interest rates were …Read More
Unemployment Rate in Greece: “The” Long Run Macroeconomic Challenge
Gogos, S. & Kosma, O. (2014) “Unemployment Rate in Greece: “The” Long Run Macroeconomic Challenge“, Eurobank Research Team, Economy and Markets, Vol. IX, Issue 6, Ιούνιος. Αποτελεί κοινή πεποίθηση, τόσο στην οικονομολογική κοινότητα όσο και στους ασκούντες την οικονομική πολιτική, ότι η πρόκληση για την ελληνική οικονομία κατά την διάρκεια των επόμενων δέκα ετών θα είναι η ταχεία μείωση του ποσοστού ανεργίας σε επίπεδα που να προσεγγίζουν τον μέσο …Read More
Περιμένοντας το θαύμα;
Τσούκαλης, Λ. (2014) “Περιμένοντας το θαύμα;“, Εφημερίδα «Η Καθημερινή», 10 Αυγούστου. Ενας κόσμος του οποίου το κέντρο βάρους μετακινείται σταθερά προς Ανατολάς, που αλλάζει με εξαιρετικά γρήγορους ρυθμούς, με πολλά σημεία ανάφλεξης που απειλούν να πάρουν επικίνδυνες διαστάσεις, μια δημοκρατική αυτοκρατορία στην Ευρώπη, που αναμετριέται με την Ιστορία προσπαθώντας με ειρηνικό τρόπο να ξεπεράσει την εθνική κυριαρχία αλλά εδώ και μερικά χρόνια βρίσκεται σε βαθιά κρίση, και μια Ελλάδα …Read More
Europe’s Fitful Financial Integration
Davies, H. (2014) “Europe’s Fitful Financial Integration“, Project Syndicate, 25 Αυγούστου. The well-publicized troubles of Portugal’s Banco Espírito Santo this summer have reminded us that the eurozone’s financial problems are by no means resolved. There are, no doubt, idiosyncratic factors behind the bank’s problems, stemming from its exposure to other parts of the Espírito Santo family’s empire. But when the bank announced a first-half loss of €3.6 billion ($4.7 …Read More
How to jumpstart the Eurozone economy
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