Corruption : A Hidden Tax on Growth

6 November, 2015

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Gaspar, Vitor, Hagan, Sean, (2015), “Corruption : A Hidden Tax on Growth”, iMFdirect, 5 November. In recent years, citizens’ concerns about allegations of corruption in the public sector have become more visible and widespread. From São Paulo to Johannesburg, citizens have taken to the streets against graft. In countries like Chile, Guatemala, India, Iraq, Malaysia and Ukraine, they are sending a clear and loud message to their leaders: Address corruption! Relevant Posts Koulovatianos, Christos, Tsoukalas, …Read More

Library » EU » Economy » Politics » Opinion Articles

Forecasting Unemployment across Countries: the Ins and Outs

6 November, 2015

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Barnichon, Régis, Garda, Paula, (2015), “Forecasting Unemployment across Countries: the Ins and Outs”, Centre for Economic Policy Research, November. This paper evaluates the flow approach to unemployment forecasting proposed by Barnichon and Nekarda (2012) for a set of OECD countries characterized by very different labor markets. We find that the flow approach yields substantial improvements in forecast accuracy over professional forecasts for all countries, with especially large improvements at longer horizons (one-year ahead …Read More

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Income inequality in pre-industrial Europe

6 November, 2015

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Alfani, Guido, Ryckbosch, Wouter, (2015), “Income inequality in pre-industrial Europe”, Voxeu, 6 November. Thomas Piketty and others have prompted renewed interest in understanding long-term patterns of inequality. This column presents evidence from pre-industrial Europe. Inequality rose even during the success stories of early modern Europe, but it can hardly have been the sole requisite for growth. In both economic history and today’s economic theory, the idea of a universal trade-off between growth and …Read More

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Why Minsky Matters: An Introduction to the Work of a Maverick Economist

5 November, 2015

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Wray, L. Randall, (2015), “Why Minsky Matters: An Introduction to the Work of a Maverick Economist”, Princeton University Press, November. Perhaps no economist was more vindicated by the global financial crisis than Hyman P. Minsky (1919–96). Although a handful of economists raised alarms as early as 2000, Minsky’s warnings began a half-century earlier, with writings that set out a compelling theory of financial instability. Yet even today he remains largely outside …Read More

Library » EU » Economy » Books

The Pass-Through of Exchange Rate in the Context of the European Sovereign Debt Crisis

5 November, 2015

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Ben Cheikh, Nidhaleddine, Rault, Christophe, (2015), “The Pass-Through of Exchange Rate in the Context of the European Sovereign Debt Crisis”, IZA, October. This paper investigates whether exchange rate pass-through (ERPT) into import prices is a nonlinear phenomenon for five heavily indebted Euro area countries, namely the so-called GIIPS group (Greece, Ireland, Italy, Portugal, and Spain). Using logistic smooth transition models, we explore the existence of nonlinearity with respect to sovereign …Read More

Library » EU » Economy » Scientific Articles

How to tackle Europe’s non-performing loan problem

5 November, 2015

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Aiyar, Shekhar, Ilyina, Anna, Jobst, Andreas, (2015), “How to tackle Europe’s non-performing loan problem”, Voxeu, 5 November. European banks are struggling with high levels of non-performing loans. This column explores the channels through which persistently high non-performing loans hold down credit growth and economic activity. A survey of EU authorities and banks reveals that the loans are not written-off for a variety of deep-seated reasons, including legal and tax code issues. An agenda is …Read More

Library » EU » Economy » Politics » Policy Papers

The End Of German Hegemony – Really?

4 November, 2015

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Saraceno, Francesco, (2015), “The End Of German Hegemony – Really?”, Social Europe, 3 November. I was puzzled by Daniel Gros’ recent column in which he claims that Germany’s dominance of the EMU may be coming to an end. Gros’ argument is based on two facts. The first is the slowing growth rate of Germany, that seems to be heading towards the pre-crisis “normal” of slow growth (Germany grew less than the EMU …Read More

Library » EU » Economy » Politics » Opinion Articles

A Positive Theory of Tax Reform

4 November, 2015

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Ilzetzki, Ethan, (2015), “A Positive Theory of Tax Reform”, Centre for Economic Policy Research, November. The political impediments to reform and the forces allowing its success are studied in a model where the tax base and statutory rate are separate instruments of tax policy. The model predicts that big bang reforms—large changes in the tax code—may be easier to enact than marginal reforms. Preferences over the tax base face a tipping point …Read More

Library » EU » Economy » Scientific Articles

Firmer Foundations for a Stronger European Banking Union

3 November, 2015

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Schoenmaker, Dirk, (2015), “Firmer Foundations for a Stronger European Banking Union”, Bruegel Institute, November The Banking Union is a milestone in European banking integration. While supervision of European banks by national supervisors was loosely coordinated through the European Banking Authority (EBA), the Banking Union has positioned the European Central Bank (ECB) as centralised supervisor of the European banks, initially in the euro area. The Banking Union creates a paradigm shift for the various stakeholders. French …Read More

Library » EU » Economy » Reports

Europe’s Orphan: The Future of the Euro and the Politics of Debt

30 October, 2015

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Sandbu, Martin, (2015), “Europe’s Orphan: The Future of the Euro and the Politics of Debt”, Princeton University Press, October Originally conceived as part of a unifying vision for Europe, the euro is now viewed as a millstone around the neck of a continent crippled by vast debts, sluggish economies, and growing populist dissent. In Europe’s Orphan, leading economic commentator Martin Sandbu presents a compelling defense of the euro. He argues …Read More

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