Kregel, Jan, (2017), “A Two-Tier Eurozone or a Euro of Regions? A radical Proposal based on Keynes’ clearing union”, Levy Economics Institute of Bard College, Public Policy Brief No. 144, September In light of the problems besetting the eurozone, this policy brief examines the contributions of John Maynard Keynes and Richard Kahn to early debates over the design of the postwar international financial system. Their critical engagement with the early …Read More

Bongardt, Annette, Codogno, Lorenzo, Torres, Francisco, (2017), “Germany’s election: Behind consensus politics lie conflicting ideas of Europe”, LSE EUROPP, 7 September Ahead of the 24 September German federal elections, Angela Merkel and the CDU/CSU are leading by a wide margin, although the number of undecided voters is still high. Annette Bongardt, Lorenzo Codogno and Francisco Torres write that although Europe has been relatively absent from the electoral debate, there is a …Read More

Veugelers, Reinhilde, (2017), “Remaking Europe: the new manufacturing as an engine for growth“, Bruegel, 7 September Europe needs to know how it can realise the potential for industrial rejuvenation. How well are European firms responding to the new opportunities for growth, and in which global value chains are they developing these new activities? The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing …Read More

Barslund, Mikkel, Gros, Daniel, (2017), “Declining Youth Unemployment in Europe: The Effect of the Business Cycle or the European Youth Guarantee?”, CEPS, 4 September A fresh look at youth unemployment in Europe finds that it is not the huge societal problem previously thought, but rather that general unemployment merits closer attention. Relevant Posts Pastore, Francesco, (2017), «Getting It Right: Youth Employment Policy within the EU», IZA Institute of Labor Economics, Policy Paper …Read More

El-Erian, Mohamed A., (2017), “What the ECB Will and Won’t Do This Week”, Bloomberg View, 6 September When the Governing Council of the European Central Bank meets on Thursday, it will continue to prepare markets for the start of its long process of normalizing its unconventional monetary policy. But the central bank is unlikely to announce the specific details that markets and others are looking for, and not just because …Read More

Parsons, Nick, (2017), “Macron gambles on reducing unemployment through greater flexibility for employers”, LSE EUROPP, 6 September French President Emmanuel Macron has pledged to reform France’s labour market regulations, but his proposals have been met with opposition from some political figures and trade unions. Nick Parsons explains that against the backdrop of falling popularity, Macron is essentially gambling that by giving employers greater flexibility, he can push down the country’s …Read More

Minenna, Marcello, (2017), “Strong Euro Is Here To Stay”, Social Europe, 4 September The euro rally on FX markets really begins to look interesting now: 1.2 on the Dollar, a level never experienced since January 2015, just before the ECB’s official announcement of its Quantitative Easing program. This year, the Euro has strengthened by over 14% against the US currency. A paradox lies between the lines: the Federal Reserve has …Read More

Beetsma, Roel, Furtuna, Oana, Giuliodori, Massimo, (2017), “Differences in follow-up help to explain why revenue-based consolidation plans appear more recessionary than spending-based plans”, VoxEU, 5 September Research has shown that planned fiscal consolidations have been less recessionary when carried out through public spending cuts rather than through increases in government revenues. This column argues that this may be at least partly due to differences in follow-up for the two consolidation …Read More

Speciale, Alessandro, (2017), “ECB Worried About the Euro? Economists Say ‘Not So Much’”, Bloomberg Markets, 5 September European Central Bank Governing Council member Ewald Nowotny said last week that the euro’s recent rise shouldn’t be “over-dramatized,” a notion that economists seem to agree with. The euro has surged more than 13 percent against the dollar this year. In terms of the real exchange rate against the euro area’s major trading partners (a …Read More

Speciale, Alessandro, Skolimowski, Piotr, Tartar, Andre, (2017), “Draghi Seen Acknowledging Euro Gains at September Decision”, Bloomberg Markets, 3 September Mario Draghi won’t miss the opportunity to mention the euro’s recent appreciation as he prepares to reconfigure the euro area’s stimulus settings, economists say. The European Central Bank president will express concern about the currency’s strength, a Bloomberg survey shows. While he declined to address the exchange rate last month at his appearance in …Read More