Seikel, Daniel, (2016), “The European Union In Crisis – Is Flexible Integration The Way Forward?”, Social Europe, 22 July The UK’s Brexit referendum is the latest and most eminent manifestation of the European Union’s severe crisis of legitimacy. An ever-increasing number of Europeans fundamentally question European integration. Without legitimacy – i.e. the acceptance and support of the Europeans – the EU has no future. The right lesson to draw is that …Read More

Guriev, Sergei, Speciale, Biagio, Tuccio, Michele, (2016), “How do regulated and unregulated labor markets respond to shocks? Evidence from immigrants during the Great Recession”, Centre for Economic Policy Research, July We study wage adjustment during the recent crisis in regulated and unregulated labor markets in Italy. Using a unique dataset on immigrant workers, we show that before the crisis wages in the formal and informal sectors moved in parallel (with a …Read More

Lemoine, Matthieu, Lindé, Jesper, (2016), “Fiscal Consolidation Under Imperfect Credibility”, Centre for Economic Policy Research, July This paper examines the effects of expenditure-based fiscal consolidation when credibility as to whether the cuts will be long-lasting is imperfect. We contrast the impact limited credibility has when the consolidating country has the means to tailor monetary policy to its own needs, with the impact when the country is a small member of a …Read More

Eggertsson, Gauti B, Summers, Lawrence H., (2016), “Secular stagnation in the open economies: How it spreads, how it can be cured”, Voxeu, 22 July The secular stagnation hypothesis suggests that low interest rates may be the new normal in years to come. This column argues that this prospect should not only lead to a major rethinking of policy from the perspective of individual economies, but also a major rethinking about monetary …Read More

Andritzky, Jochen, Feld, Lars P, Schmidt, Christoph M, Schnabel, Isabel, Wieland, Volker, (2016),  “Creditor participation clauses: Making orderly sovereign debt restructuring feasible in the Eurozone”, Voxeu, 21 July To make the no-bailout clause credible and to enhance the effectiveness of crisis assistance, private creditors should contribute to crisis resolution in the Eurozone. This column proposes a mechanism to allow for orderly restructuring of sovereign debt as part of ESM programmes. If debt exceeds certain thresholds, …Read More