Louri-Dendrinou, Ε. (2014) “How likely is a credit-less recovery in the euro area? The role of a capital markets union“, LSE EUROPP, Hellenic Observatory – European Institute, 10 December. It is often discussed how bank-dependent for financing investment euro area firms are. It is estimated that 80% of their investment needs are financed from banks and only 20% from capital markets, while in the US the reverse is true. …Read More
Interview with Thomas Piketty: “The myth of national sovereignty helps big corporations screw us over”, The European Magazine, 12 December. French economist Thomas Piketty has put inequality back on the map and is being hailed as the Karl Marx of the 21st century. He talked to Max Tholl and Florian Guckelsberger about a globalization gone wrong, a Eurozone parliament and our obsession with economic growth. The European: Mr. …Read More
Bordo, M. & Siklos, P. (2014) “Central-bank credibility, reputation and inflation targeting in historical perspective“, VoxEU Organisation, 12 December. Central bank credibility is critically linked to communication and commitment. This column analyses the historical evolution of credibility, showing its prewar peak and the subsequent dip from which it did not fully recover until the 1980s. Inflation targeting has played a key role in establishing credibility in both developed and …Read More
Cingano, F. (2014) “Trends in Income Inequality and its Impact on Economic Growth“, OECD Social, Employment and Migration Working Papers No.163, OECD Publishing, 09 December. In most OECD countries, the gap between rich and poor is at its highest level since 30 years. Today, the richest 10 per cent of the population in the OECD area earn 9.5 times the income of the poorest 10 per cent; in the …Read More
International Labour Organisation (2014) Global Wage Report 2014/15, 05 December. The Global Wage Report 2014/15 analyses the evolution of real wages around the world, giving a unique picture of wage trends and relative purchasing power globally and by region. The 2014/15 edition examines the link between wages and inequality at the household level. It shows that wages constitute the largest single source of income for households with at least …Read More
Lucas, D. (2014) “Putting an accurate price tag on government credit support“, VoxEU Organisation, 05 December. Governments run the world’s largest financial institutions. The size of government activities has grown in recent decades but comprehensive estimates are unavailable. This column presents new evidence on the costs of government credit support. It argues that governments tend to understate credit costs and the consequences of that could be considerable. Cost underreporting …Read More
Michael Anyadike-Danes, Carl-Magnus Bjuggren, Sandra Gottschalk, Werner Hölzl, Dan Johansson, Mika Maliranta, and Anja Myrann (2014) “An International Cohort Comparison of Size Effects on Job Growth“, Discussion Paper No. 14-102, Centre for European Economic Research (ZEW), October. Abstract The contribution of different-sized businesses to job creation continues to attract policymakers’ attention, however, it has recently been recognized that conclusions about size were confounded with the effect of age. We …Read More
Barber, T. (2014) “Economic chill set to make Finland the sick man of Europe“, Financial Times, Comments Blog, 02 December. Which of the eurozone’s 18 member states will be the weakest performing economy in 2015? Italy, which has recorded no economic growth since 1999? Cyprus, which is still reeling from its financial sector collapse in 2012-13? Or some other hard-pressed southern European nation? No. In all probability, the sick …Read More
Vogel, L. (2014) “Structural reforms at the zero bound“, European Economy – Economic Papers. Νο. 537, European Commission Publications, November 2014: Brussels. This paper uses the European Commission’s QUEST macroeconomic model to analyse the impact of structural reforms on economic activity in an environment in which the zero bound on monetary policy rates is temporarily binding. The simulations suggest that although such reforms can have a negative impact on …Read More
Rodríguez-Pose, Α. & Hardy, C. D. (2014) “Cultural diversity and entrepreneurship: Evidence from England and Wales“, VoxEU Organisation, 04 December. Cultural diversity is increasing globally. This column examines diversity from the point of view of entrepreneurship. It demonstrates that cultural diversity breeds entrepreneurship – but the nature of the diversity is critical. Recent migrants, rather than the descendants of past migrants, create the conditions for a more dynamic entrepreneurial …Read More
