Scenario Team Eurozone 2020, (2013), “Future Scenarios for the Eurozone: 15 Perspectives on the Euro Crisis”, Friedrich Ebert Stiftung, Μάρτιος. The Eurozone is standing at a crossroads, facing the biggest challenges in its history: the systemic crisis and the political attempts to overcome it have far-reaching consequences for the future of the Economic and Monetary Union, European integration and Europe in the world. By identifying the main driving forces that …Read More
The Politics of Moral Hazard
Pisani-Ferry, Jean, (2013), “The Politics of Moral Hazard”, www.project-syndicate.org, 30 Μαρτίου. It is an old and never-ending contest. On one side are the moral-hazard scolds, claiming that one of the major responsibilities confronting policymakers is to establish incentives that demonstrate that imprudent behavior does not pay. On the other side are the partisans of financial stability, for whom confidence in the financial system is too precious to be endangered, even …Read More
Αντιγόνη Λυμπεράκη και Τήνιος Πλάτων: Κύπρος στον δρόμο της Φινλανδίας ή, μήπως, της Αργεντινής;
Λυμπεράκη, Αντιγόνη, Τήνιος, Πλάτων, (2013), «Κύπρος στον δρόμο της Φινλανδίας ή, μήπως, της Αργεντινής;», www.protagon.gr, 30 Μαρτίου. Η Κύπρος, τις μέρες που πέρασαν, διαπιστώνει το τέλος ή την απότομη προσγείωση ενός οικονομικού μοντέλου. Καλείται να ανασυνταχθεί για να βρει έναν νέο ρόλο για τον εαυτό της στην παγκόσμια οικονομία. Υπάρχουν ιστορικά παραδείγματα, θετικά και αρνητικά. Από τη μια πλευρά η Φινλανδία και η Σουηδία. Στα μέσα της δεκαετίας του 1990 …Read More
Labor Market Policies and IMF Advice in Advanced Economies during the Great Recession
Blanchard, Olivier, Jaumotte, Florence and Loungani, Prakash, (2013), “Labor Market Policies and IMF Advice in Advanced Economies during the Great Recession”, International Monetary Fund, Staff Discussion Note, N.13/02. This paper does two things. First, it articulates what are the main implications of theoretical and empirical research for design of labor market policies and labor market institutions. Second, in this light, the paper analyzes the IMF’s labor market recommendations since the …Read More
Did Cyprus Set a Dangerous Precedent? Some Further Thoughts
Kirkegaard, Jacob, (2013), “Did Cyprus Set a Dangerous Precedent? Some Further Thoughts”, The Peterson Institute for International Economics, 29 Μαρτίου. The precedent of imposing losses on uninsured depositors in Laiki Bank and the Bank of Cyprus was a sound one, but that does not mean it will be a widely used one in the euro area—or that it puts the entire euro area banking system at risk of depositor runs. …Read More
EU No, Euro Yes! European Public Opinions Facing The Crisis (2007-2012)
Debomy, Daniel, (2013), “EU No, Euro Yes! European Public Opinions Facing The Crisis (2007-2012)”, Notre Europe – Jacques Delors Institute, Policy Paper N. 90. Steadily consistent answers to several questions asked for Standard Eurobarometer opinion polls show that a decline in public opinion on the European Union observed since 2007 significantly worsened in 2011, bringing support to historically low levels which continue today. Since 2010 and 2011 respectively, indicators of …Read More
Banking Union with a Sovereign Virus: The self-serving regulatory treatment of sovereign debt in the euro area
Gros, Daniel, (2013), “Banking Union with a Sovereign Virus: The self-serving regulatory treatment of sovereign debt in the euro area”, The Centre for European Policy Studies, N.289. In many eurozone countries, domestic banks often hold more than 20% of domestic public debt, which is an unsatisfactory situation given that banks are highly leveraged and that sovereign debt is inherently subject to default risk within the euro area. This paper by …Read More
Eurozone: Looking for growth
Boone, Laurence, Céline, Renucci, Ruben Segura-Cayuela, (2013), “Eurozone: Looking for growth”, www.voxeu.org, 25 Μαρτίου. What happens after the crisis ends? This column estimates the long-term effects of the current cyclical downturn on Eurozone economies. In the absence of any real impetus for bold reform, estimates show that the damage will indeed be long lasting, permanently impairing growth for an ageing population that requires higher growth capacity more than ever before.
The Cyprus Eurocrisis: the beginning of the end of the Eurozone?
Trimikliniotis, Nicos, (2013), “The Cyprus Eurocrisis: the beginning of the end of the Eurozone?”, Open Democracy – Free Thinking for the World, 25 Μαρτίου. EU accession in 2004 did little if anything to make runaway bankers accountable; on the contrary, the so-called institutional ‘independence’ of the Central Bank making the Governor accountable to the ECB rather than having any democratic accountability to the people who would be immediately affected, made …Read More
Europe’s Cyprus blunder and its consequences
Véron, Nicolas, (2013), “Europe’s Cyprus blunder and its consequences”, www.voxeu.org, 25 Μαρτίου. The Monday morning Eurozone Cyprus bailout is now public, although details are scant. This column argues that this package cancels out some of the mistakes in last week’s package. Last week, the Troika should have vetoed the small-deposit tax and prepared a plan B for the Cypriot parliament’s rejection. Avoiding the risky scenario of a Cyprus exit will …Read More