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Policy change needed to accelerate investment in structural transformation

Laurence Boone, Debora Revoltella, (2019), «Policy change needed to accelerate investment in structural transformation», Voxeu, 6 December For the past two years, global growth outcomes and prospects have steadily deteriorated, dragged down by persistent policy uncertainty and weak trade. Investment growth has collapsed in tandem, just when it needed to speed up in response to historic challenges: digitalisation, climate change, trade relations. Urgent policy action is needed to enable the …Read More

GDP up by 0.2% and employment up by 0.1% in the euro area

Eurostat/GDP up by 0.2% and employment up by 0.1% in the euro area/5 December 2019 Seasonally adjusted GDP rose by 0.2% in the euro area (EA19) and by 0.3% in the EU28 during the third quarter of 2019, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2019, GDP had grown by 0.2% in both …Read More

Fiscal policy cannot save the ECB

Daniel Gros, Angela Capolongo, (2019), «Fiscal policy cannot save the ECB», VoxEU, 3 December Given persistently low inflation, sluggish growth, and global uncertainties, the ECB needs to provide even more monetary stimulus. However, with interest rates already negative and strong opposition to further asset purchases (Financial Times 2019), it seems to have run out of ammunition. This is why the parting ECB President, Mario Draghi, called for fiscal policy “to …Read More

Euro area annual inflation up to 1.0%

Eurostat, (2019), « 2019 Euro area annual inflation up to 1.0%», 29 November Euro area annual inflation is expected to be 1.0% in November 2019, up from 0.7% in October according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in November (2.0%, compared with 1.5% …Read More

The next generation of digital currencies: in search of stability

Gregory Claeys, Maria Demertzis, (2019), «The next generation of digital currencies: in search of stability», Brugel, 2 December Four major developments have challenged the status quo and reopened the debate on the forms that money will take in the future: 1) use of cash as a medium of exchange has declined; 2) distributed ledger technology (DLT) has led to the emergence of thousands of digital cryptocurrencies; 3) some global tech giants …Read More

Euro area unemployment at 7.5%

Eurostat/Euro area unemployment at 7.5%/29 November 2019 The euro area (EA19) seasonally-adjusted unemployment rate was 7.5% in October 2019, down from 7.6% in September 2019 and from 8.0% in October 2018. This is the lowest rate recorded in the euro area since July 2008. The EU28 unemployment rate was 6.3% in October 2019, stable compared with September 2019 and down from 6.7% in October 2018. This remains the lowest rate …Read More

Beyond the Phillips curve: Understanding low wage growth in the euro area

Christiane Nickel, Elena Bobeica, Gerrit Koester, Eliza Lis, Mario Porqueddu, Cecilia Sarchi , (2019), «Beyond the Phillips curve: Understanding low wage growth in the euro area», VoxEU, 25 November The euro area labour market improved strongly from 2013 onwards, while wage growth remained subdued until recently. From the second quarter of 2013 to the second quarter of 2019, the unemployment rate in the euro area decreased from 12.1% to 7.6%. Employment …Read More

Share of EU GDP spent on social protection slightly down

Eurostat, (2019), «Share of EU GDP spent on social protection slightly down», 22 November Social protection expenditure in the European Union (EU) stood at 27.9% of GDP in 2017, slightly down compared with 28.7% in 2012, according to data from Eurostat, the statistical office of the European Union. The two main sources of funding of social protection at EU level were social contributions, making up 55% of total receipts, and …Read More

The state of China-European Union economic relations

Uri dadush, MartaDominguez-Jimenez, Tanlang Gao, (2019), «The state of China-European Union economic relations», 20 November More can be done to capture the untapped trade and investment opportunities that exist between China and the EU. China’s size and dynamism, and its recent shift from an export-led to a domestic demand-led growth model, mean that these opportunities are likely to grow with time. Related Posts Η Καθημερινή, (2019), “H διαμάχη ΗΠΑ, Κίνας …Read More

How the IMF Can Battle Gradual Irrelevance

Alexander Lehmann, (2019), «How the IMF Can Battle Gradual Irrelevance», Project Syndicate, 19 November These days, the International Monetary Fund’s policy recommendations – especially as they pertain to the advanced economies – have little impact. Although this is partly a consequence of more inward-looking national politics in richer countries, the Fund itself is not blameless. Related Posts VoxEU, (2019), “How the IMF can ‘raise its game’ on monetary policy advice”, …Read More