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
Crisis management for euro-area banks in central Europe
Alexander Lehmann, (2019), «Crisis management for euro-area banks in central Europe», Bruegel, 19 November Euro-area bank integration has decreased as post-financial crisis national rules require banks to hold more capital at home. It might be undermined further by bank resolution planning. Either a Single Resolution Board takes the lead for the entire banking group or independent local intervention schemes need to be developed for crisis resolution. Related Posts Bruegel, (2019), …Read More
2019 ARTICLE IV CONSULTATION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR GREECE
IMF Country Report No. 19/340, (2019), «2019 ARTICLE IV CONSULTATION—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR GREECE», 15 November Greece’s economic recovery continues, but it has fallen far short of expectations. The new government elected in July has pledged to follow pro-growth policies while honoring fiscal and structural policy commitments to Euro Area (EA) member states, but its ability to overcome vested interests has yet to …Read More
GDP up by 0.2% and employment up by 0.1% in the euro area
Eurostat, (2019), «GDP up by 0.2% and employment up by 0.1% in the euro area», 14 November 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 a flash estimate published by Eurostat, the statistical office of the European Union. In the second quarter of 2019, GDP had grown by …Read More
The Digital Money Revolution
Huw Van Steenis, (2019), «The Digital Money Revolution», Project Syndicate , 13 November The rapid pace and sheer scale of innovation in digital currencies and mobile payments indicates that a monetary revolution is forthcoming. The choice for governments and central banks is whether to stand in front of a train that is gaining steam, or get on board and reap the benefits. Related Posts VoxEU, (2019), «A digital euro to …Read More