Mody, Ash., (2013), “Sovereign debt and its restructuring framework in the euro area”, www.bruegel.org, 12 August. To compensate for the inflexibility of fixed exchange rates, the euro area needs flexibility through a system of orderly debt restructuring. With virtually no room for macroeconomic manoeuvring since the crisis onset, fiscal austerity has been the main instrument for achieving reductions in public debt levels; but because austerity also weakens growth, public debt ratios …Read More
Has Austerity Failed in Europe?
Gros, D., (2013), “Has Austerity Failed in Europe?”, www.project-syndicate.org, 14 August. Although many European governments have announced expenditure cuts and tax hikes, their debt/GDP ratios continue to deteriorate. So, if the purpose of austerity was to reduce debt levels, its critics are right: fiscal belt-tightening has failed. But the goal of austerity was not just to stabilize debt ratios.
2013 Spillover Report
IMF, (2013), “2013 Spillover Report”, IMF Policy Paper. Five years after the global financial crisis, the severe tensions and risks rooted last year in some of the “Systemic five” (S5)—China, euro area, Japan, United Kingdom, United States––have abated but all five are still operating below potential, i.e., they are not contributing to global activity as much as they might: if they could somehow close their output gaps, global output would …Read More
Representation in the European State of Emergency: Parliaments against Governments?
Puntscher, S., Wydraa, D., (2013), “Representation in the European State of Emergency: Parliaments against Governments?”, Journal of European Integration, Vol. 35, Issue 5, pp. 565-582. If governments allow themselves to be entirely bound to the decisions of their parliament, without protecting their own freedom to act, a break up of Europe would be a more probable outcome than deeper integration.’ The statement of the Italian Prime Minister and head of …Read More
Representation Deficits and Surpluses in EU Policy-making
Bellamy, R., Kröger, S., (2013), “Representation Deficits and Surpluses in EU Policy-making”, Journal of European Integration, Vol. 35, Issue 5, pp. 477-497. Representation and democracy are not always complementary. Sometimes the one undermines the other. Too much democracy can create a representation deficit, as occurs when majorities oppress or neglect minorities. However, the opposite can also arise. The over representation of different groups can undermine the processes whereby representatives are …Read More
The political economy of corporate tax harmonization — Why do European politicians (dis)like minimum tax rates?
Osterloh, St., Heinemann, Fr., (2013), “The political economy of corporate tax harmonization — Why do European politicians (dis)like minimum tax rates?”, European Journal of Political Economy, Volume 29, pp. 18–37. Setting minimum tax rates is a well discussed way of mitigating pressure from tax competition. This paper investigates which motives shape the support for a minimum corporate tax among politicians. We make use of a unique data base: a survey …Read More
EL.STAT.: The Greek Economy
EL.STAT., (2013), “The Greek Economy”, 26 July. The Greek Economy publication aims to provide the latest key economic information on Greece in a clear and comprehensive manner. Written in both the greek and english languages, it is designed for users of statistics who seek updated information on recent economic developments, as well as long-term economic trends. It provides information on major economic indicators and time series compiled mostly by the …Read More
The Greek Economic Crisis and the Experience of Austerity
Papadimitriou, D., Nikiforos, M., Zezza, G., (2013), “The Greek Economic Crisis and the Experience of Austerity”, Levy Economics Institute of Bard College, Strategic Analysis, July 2013. Employment in Greece is in free fall, with more than one million jobs lost since October 2008—a drop of more than 28 percent. In March, the “official” unemployment rate was 27.4 percent, the highest level seen in any industrialized country in the free world …Read More
Whose economic reform?
Pisani-Ferry, J., (2013), “Whose economic reform?”, www.project-syndicate.org, 30 July. Together with fiscal consolidation, structural reform is the new European mantra. International organizations and European Union bodies regard such reform as a prerequisite of economic recovery, growth, and alleviation of the unemployment plague.
IMF: Fourth Review Under Extended Fund Facility Arrangement for Greece, Approves €1.72 Billion Disbursement
IMF, (2013), “Completes Fourth Review Under Extended Fund Facility Arrangement for Greece, Approves €1.72 Billion Disbursement”, Press Release No. 13/280. The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of Greece’s performance under an economic program supported by an Extended Fund Facility (EFF) arrangement. The completion of this review enables the disbursement of SDR 1.51 billion (about €1.72 billion, or US$2.29 billion), which would bring …Read More