S. Blattner, Tobias. A. S. Joyce, Michael, (2016), “Net debt supply shocks in the euro area and the implications for QE”, ECB Working Paper Series, 9 September This paper examines how shocks to the net supply of government bonds affect the euro area term structure of interest rates and the wider macroeconomy. To measure net debt supply we construct a new free-float measure, which adjusts total government debt of the four largest euro …Read More
Brandolini, Andrea, Carta, Francesca, D’Amuri, Francesco, (2016), “A Feasible Unemployment-Based Shock Absorber for the Euro Area”, Journal of Common Market Studies, 11 July Based on theoretical insights, this article identifies the broad characteristics that a shock absorber based on unemployment should have in order to be incentive-compatible and politically feasible. It then empirically derives the combination of activation thresholds, experience rating, eligibility criteria and benefit generosity which define the systems offering the highest stabilization for …Read More
Goedemé, Tim, Collado, Diego, (2016), “The EU Convergence Machine at Work. To the Benefit of the EU’s Poorest Citizens?”, Journal of Common Market Studies, 6 Αpril Social cohesion in the EU (European Union) is usually assessed on the basis of GDP per capita and relative poverty rates. These indicators show that the ‘European convergence machine’ led to greater social cohesion between old and new Member States (EU-15 and NMS) until the onset of …Read More
Glöckler, Gabriel, Lindner, Johannes, Salines, Marion, (2016), “Explaining the sudden creation of a banking supervisor for the euro area”, Journal of European Public Policy, 2 Αugust While banking supervision in the European Union (EU) had been subject to slow incremental changes in the 2000s, the establishment of the Single Supervisory Mechanism (SSM) in 2012/2013 amounted to a comparably swift and significant transfer of sovereignty. This article explores the institutional dynamics behind …Read More
Oulasvirta, Lasse O., Bailey, Stephen J., (2016), “Evolution of EU public sector financial accounting standardisation: critical events that opened the window for attempted policy change”, Journal of European Integration, 11 Μay This paper analyses agenda-setting for EU policy change in respect to public sector accounting harmonisation, adopting the garbage can model for its theoretical framework. It utilises qualitative research methods to determine what caused the window of opportunity to open, why it …Read More
Togati, Teodoro Dario, (2015), “How can we explain the persistence of the Great Recession? A balanced stability approach”, Cambridge Journal of Economics, September The Great Recession (GR) creates a stalemate in macroeconomics. On the one hand, standard approaches fail to account for its persistence in a credible way due to their implicit assumption that the economy is internally stable. On the other, heterodox approaches fail to regain consensus. While often correctly …Read More
Seretis, Stergios A., Tsaliki, Persefoni V., (2016), “Absolute Advantage and International Trade – Evidence from Four Euro-zone Economies”, Review of Radical Political Economics, Αugust The purpose of this paper is to give empirical content to the approach of international trade based on the principle of absolute advantage and to show that differences in productivity may give rise to transfers of value towards the units of capital with an absolute advantage in production. Our …Read More
Arellano, Cristina, Atkeson, Andrew, Wright, Mark, (2016), “External and Public Debt Crises”, NBER Macroeconomics Annual, Volume 30 Number 1 At the end of the first decade of the twenty-first century, the members of two advanced monetary and economic unions, the nations of the euro zone and the US States, experienced debt crises with spreads on government borrowing rising dramatically: in a short period of time, Californian spreads rose sixfold, Italian rose tenfold, Illinois fifteenfold and …Read More
Dell’Ariccia, Giovanni, Igan, Deniz, Laeven, Luc, Tong, Hui, (2016), “Credit booms and macrofinancial stability”, Economic Policy, Volume 31, Issue 86, 31 Μarch This paper explores several questions about credit booms and busts: When do credit booms occur? When do they end up in busts, and when do they not? What are the implications for different policies if curbing credit growth and/or mitigating the associated risks is an objective? We find that credit booms are often associated …Read More
Belke, Ansgar, Gros, Daniel, (2016), “Optimal Adjustment Paths in a Monetary Union”, CEPS Working Document No. 424, July Adjustment to an external imbalance is more difficult within a monetary union if wages are sticky. Periods of high unemployment are usually necessary to achieve the required real depreciation (internal devaluation). Gradual adjustment is usually recommended to distribute the output and employment cost over time. This paper takes into account that gradual adjustment also …Read More
