Nouriel Roubini, (2019), «The Allure and Limits of Monetized Fiscal Deficits», Project Syndicate, 28 October With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. When that happens, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it. Related Posts IMFBlog, (2019), «The World Economy: Synchronized Slowdown, Precarious Outlook», 15 October Voxeu, (2019), «Right …Read More
Christine Lagarde, First Woman to Head the ECB, Faces Peril on All Sides
Jana Randow, Sandrine Rastello, (2019), «Christine Lagarde, First Woman to Head the ECB, Faces Peril on All Sides», 28 October Mario Draghi’s successor is going to need all her political and technocratic skills to maneuver European monetary policy toward growth, in spite of bureaucracy, nationalism, populism, and just plain parsimony. Related Posts PoliticoEu, (2019), «Politics, not policy will help Lagarde save the eurozone», 29 October Bruegel ,(2019), «Challenges ahead for …Read More
The World Economy: Synchronized Slowdown, Precarious Outlook
Gita Gopinath, (2019), «The World Economy: Synchronized Slowdown, Precarious Outlook», IMFBlog, 15 October The global economy is in a synchronized slowdown and we are, once again, downgrading growth for 2019 to 3 percent, its slowest pace since the global financial crisis. Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions. We estimate that the US-China trade tensions will cumulatively reduce the level of global GDP by 0.8 …Read More
Politics, not policy will help Lagarde save the eurozone
Guntram Wolf, Rbecca Christie, (2019), «Politics, not policy will help Lagarde save the eurozone», PoliticoEu, 29 October When Christine Lagarde was tapped to become the next chief of the European Central Bank, her detractors were quick to argue her appointment was a mistake. Though she has had a distinguished career as French finance minister and head of the International Monetary Fund, she has never run a central bank or even trained as …Read More
New ESM Discussion Paper: Completing banking union to support Economic and Monetary Union
Paolo Fioretti et al. (2019), «New ESM Discussion Paper: Completing banking union to support Economic and Monetary Union», European Stability Mechanism, Volume 2019 | No 7, 16 October This discussion paper depicts recent developments in the euro area banking system and sheds light on institutional and economic obstacles to further integration. Based on those facts, the paper proposes a way forward for further integration and completion of banking union, considering the implication …Read More
Objectives and boundaries of monetary policy: A Governor to renew the Bank of England’s monetary vows
Jagjit Chadha, (2019), «Objectives and boundaries of monetary policy: A Governor to renew the Bank of England’s monetary vows», Voxeu, 25 October The Federal Reserve is reviewing its monetary policy strategy, tools, and communication processes, but there has been surprisingly little formal debate about these key aspects of monetary policymaking in the UK and the euro area. This column argues that the impending appointment of the next Governor of the …Read More
The Single Market remains the decisive power of the EU
Jacques Pelkmans, (2019), «The Single Market remains the decisive power of the EU», Ceps, 18 October The EU’s single market should not just be one among several priorities for the new Commission and Parliament. The single market was and is the core business of the EU. Much of what goes on or is proposed under elaborate titles is actually part and parcel of the single market. The striking revelation of …Read More
How to ward off the next recession
Jean Pisani Ferry, (2019), «How to ward off the next recession», Bruegel, 2 October Despite confident official pronouncements, the deteriorating state of the global economy is now high on the international policy agenda. The OECD recently revised down its forecasts to 1.5% growth in the advanced G20 economies in 2020, compared to almost 2.5% in 2017. And its chief economist Laurence Boone warned of the risk of further deterioration – …Read More
Government debt down to 86.4% of GDP in euro area
Eurostat/Government debt down to 86.4% of GDP in euro area/22 October 2019 At the end of the second quarter of 2019, the government debt to GDP ratio in the euro area (EA19) stood at 86.4%, compared with 86.5% at the end of the first quarter of 2019. In the EU28, the ratio decreased from 81.1% to 80.5%. Compared with the second quarter of 2018, the government debt to GDP ratio …Read More
European economic democracy: a path out of the crisis
Lorena Lombardozzi and Neil Warner, (2019), «European economic democracy: a path out of the crisis», Social Europe, 21 October The crisis of purpose in European social democracy is not for want of attempts to propose policy solutions. On one level, reforms which need to take place at the European level—from a eurozone fiscal union to the expansion of protection for workers—are well acknowledged. On the other, especially in the British …Read More