Hites Ahir, Nicholas Bloom and Davide Furceri, (2019), “The global economy hit by higher uncertainty”, VoxEU, 11 May According to the latest IMF projections, the global economy is now projected to grow at 3.3% in 2019, down from 3.6% in 2018. This is partly due to rising uncertainty in many parts of the world. This column shows how these statements are in line with the latest reading of the World …Read More
Don’t Fear the Euroskeptics
Gros, Daniel (2019), “Don’t Fear the Euroskeptics“, Project-Syndicate. org, Μάιος Although the European Union is arguably as popular as ever, the next European Parliament may well contain a large minority of forces skeptical or hostile to further integration. Instead of viewing this as a threat, pro-Europeans should seize the opportunity to start a necessary debate about the continent’s future. Σχετικές Αναρτήσεις Karl Aiginger, (2019), «Populism: Roots, consequences, and counter strategy», 20 …Read More
How stress tests fail
Bulow, Jeremy (2019), “How stress tests fail“, VOX Centre for Economic Policy Research, May Bank stress tests in the US were an important tool for bailing out banks in the Great Recession. As this column points out, however, because the tests use regulatory rather than market measures of asset values and risk they have almost nothing to do with whether a bank will be economically solvent under test conditions. This …Read More
How stress tests fail
Bulow, Jeremy (2019), “How stress tests fail“, VOX Centre for Economic Policy Research, May Bank stress tests in the US were an important tool for bailing out banks in the Great Recession. As this column points out, however, because the tests use regulatory rather than market measures of asset values and risk they have almost nothing to do with whether a bank will be economically solvent under test conditions. This …Read More
European Economic Forecast – Spring 2019
European Commission (2019), “European Economic Forecast – Spring 2019“, Institutional Paper 102, May Economic activity in the EU slowed further in the second half of 2018 as growth in the global economy and trade weakened amid tightened global financing conditions, unresolved trade tensions, high uncertainty, and as a result of exceptional weakness in the manufacturing sector that extended into the start of 2019. The slowdown was even more pronounced in the …Read More
Monetary policy, credit institutions and the bank lending channel in the euro area
Carlo Altavilla, Desislava C. Andreeva, Miguel Boucinha and Sarah Holton (2019), “Monetary policy, credit institutions and the bank lending channel in the euro area”, ECB Occasional Paper Series No 222, May As the euro area has a predominantly bank-based financial system, changes in the composition and strength of banks’ balance sheets can have very sizeable implications for the transmission of monetary policy. This paper provides an overview of developments in …Read More
Low productivity jobs continue to drive employment growth
OECD, (2019), “Low productivity jobs continue to drive employment growth”, 29 April Employment is rising in OECD countries but most jobs continue to be created in relatively low-productivity, low-wage activities, says a new OECD report. The latest Compendium of Productivity Indicators says the trend has compounded the impact of generally weak business investment on productivity growth. The downward pressure on wages may have allowed firms to defer investment decisions, instead …Read More
EU enlargement 15th anniversary: Upward steps on the income ladder
Zsolt Darvas, (2019), “EU enlargement 15th anniversary: Upward steps on the income ladder”, Bruegel, 30 April Since their accession to the EU 15 years ago, the incomes of most central Europeans have increased faster than the incomes of longer-standing members and, thereby, they moved upwards in the EU distribution of income. Yet the very poorest people have not progressed in some countries. Relevant Posts Thomas Blanchet, Lucan Chancel and Amory …Read More
Euro area architecture: What reforms are still needed, and why
Agnès Bénassy-Quéré, Markus K Brunnermeier, Henrik Enderlein, Emmanuel Farhi, Marcel Fratzscher, Clemens Fuest, Pierre-Olivier Gourinchas, Philippe Martin, Jean Pisani-Ferry, Hélène Rey, Isabel Schnabel, Nicolas Véron, Beatrice Weder di Mauro, Jeromin Zettelmeyer, (2019), “Euro area architecture: What reforms are still needed, and why”, VoxEU, 1 May In January 2018, CEPR published a Policy Insight recommending euro area reforms which received broad support as well as some criticism. In this column, the …Read More
When Facts Change, Change the Pact
Jean Pisany-Ferry, (2019), “When Facts Change, Change the Pact”, Project Syndicate, 29 April “When facts change, I change my mind,” John Maynard Keynes famously said. With long-term interest rates currently near zero, the European Union should reform its fiscal framework to allow member states to increase their debt-financed public investments. Relevant Posts Xavier Timbeau, (2019), «The sustainability imperative—how really to assess the European economy», Social Europe, 10 April Paul Taylor, …Read More