European Commission, (2016), “Fiscal Sustainability Report 2015”, Institutional Paper 018, European Commission’s publications, January The Fiscal Sustainability Report 2015 provides an overview of the challenges to public finance sustainability faced by Member States in the short, medium and long term. Although public finances in the EU today are more sustainable than they were at the onset of the crisis, significant challenges remain over the medium and long term because of …Read More
Emerging Markets Fear Yellen, But Need To Keep Their Eye On Draghi
Steil, Benn, Smith, Emma, (2016), “Emerging Markets Fear Yellen, But Need To Keep Their Eye On Draghi”, Forbes, 22 January In anticipation of the U.S. Federal Reserve’s first rate hike in nearly a decade, $500 billion in capital outflows slammed emerging markets (EMs) last year–a slow-motion version of the 2013 “taper tantrum,” when the Fed signaled that the era of quantitative easing was coming to an end. Relevant Posts Minenna, Marcello, (2016), “How …Read More
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German Exports And The Eurozone
Wren Lewis, Simon, (2016), “German Exports And The Eurozone”, Social Europe Journal, 24 January I have argued that the low level of German wage increases before the financial crisis were a significant destabilising influence on the Eurozone, which also indirectly contributed to Germany taking a hard line on austerity. Relevant Posts Turner, A. (2014) “Germany’s Secret Credit Addiction“, Project Syndicate, 10 November. The Economist Explains: “Why the German economy is in a …Read More
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The Lender of Last Resort Function after the Global Financial Crisis
Dobler, Marc, Gray, Simon, Murphy, Diarmuid, Radzewicz-Bak, Bozena, (2016), “The Lender of Last Resort Function after the Global Financial Crisis”, IMF Working Paper No. 16/10, 22 January The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and …Read More
Library » EU » Economy » Scientific Articles
Adjustment within the Euro Area: Is it all about competitiveness?
Gros, Daniel, (2016), “Adjustment within the Euro Area: Is it all about competitiveness?”, CEPS, Special Report No. 127, 25 January The key problem afflicting the eurozone today seems clear: the periphery experienced a large loss of competitiveness during the boom years. In order for these economies to recover, they must restore their competitiveness, ideally by increasing productivity. This contribution shows, however, that the story line is not that straightforward. The drivers of competitiveness …Read More
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Balance-of-Payments Adjustment in the Eurozone
Micossi, Stefano, (2016), “Balance-of-Payments Adjustment in the Eurozone”, CEPS publications, 22 January This policy contribution describes the unresolved adjustment problems confronting the eurozone, and places them in historical perspective by comparing developments in key real economic variables under EMU with those observed under the Bretton Woods system. The main finding is that the eurozone is afflicted by a strong deflationary bias and that, therefore, under current trends, deep economic and social …Read More
Library » EU » Economy » Policy Papers
The Protocol of Frankfurt: a new treaty for the eurozone
Duff, Andrew, (2016), “The Protocol of Frankfurt: a new treaty for the eurozone”, European Policy Centre, 12 January. At a time when the EU finds itself in a perfect storm of crises which it seems unable to overcome, a bold move is needed to reinvigorate the EU’s system of government and stave off the risk of disintegration. In order to address the inherent weakness of the EU’s monetary and economic governance, …Read More
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The Labor Market Performance of Immigrants in Germany
Beyer, Robert C. M., (2016), “The Labor Market Performance of Immigrants in Germany”, IMF Working Paper No. 16/6, 21 January. The paper uses a large survey (GSOEP) to analyze the labor market performance of immigrants in Germany. It finds that new immigrant workers earn on average 20 percent less than native workers with otherwise identical characteristics. The gap is smaller for immigrants from advanced countries, with good German language skills, and with …Read More
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World Economic Outlook (WEO) Update-Subdued Demand, Diminished Prospects
World Economic Outlook (WEO) Update, (2016), “Subdued Demand, Diminished Prospects“, IMF, January. Global growth, currently estimated at 3.1 percent in 2015, is projected at 3.4 percent in 2016 and 3.6 percent in 2017. The pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook (WEO), especially in emerging market and developing economies. In advanced economies, a modest and uneven recovery is expected to …Read More
Social insurance with competitive insurance markets and risk misperception
Cremer, Helmuth, Roeder, Kerstin, (2016), “Social insurance with competitive insurance markets and risk misperception”, Centre for Economic Policy Research, January. This paper considers an economy where individuals differ in productivity and in risk. Rochet (1991) has shown that when private insurance markets offer full coverage at fair rates, social insurance is desirable if and only if risk and productivity are negatively correlated. This condition is usually shown to be satisfied for many health risks, …Read More
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