Ad van Riet, (2016), “Safeguarding the euro as a currency beyond the state“, ECB Occasional Papers No 173 / Μάϊος This paper reviews the debate on the longer-term requirements for safeguarding the euro as a currency beyond the state that is anchored through collective governance instead of a central government. The strengthening of EU economic and financial governance in the wake of the euro area crisis goes a long way towards creating …Read More

Matthias Bauer, Fredrik Erixon, (2016), “Competition, Growth and Regulatory Heterogeneity in Europe’s Digital Economy”, ECIPE Working paper No 2/2016, April Far too many policymakers in Europe have a confused vision about the policy conditions required for Europe to grow its digital economy. Their habits of thought – a sense of what is reasonable, necessary and inevitable – are now deeply embedded in the EU’s endeavours of digital policymaking. Digital underperformance, as frequently …Read More

Dąbrowski, Marek, (2016), “Interaction between monetary policy and bank regulation: lessons for the ECB”, CASE Networks Studies & Analyses No 480 2/2016 The European Central Bank (ECB) recently became engaged in macro-prudential policies and the micro-prudential supervision of the largest Euro area banks. These new tasks should help complete financial integration, and make the Euro area more resilient to financial instability risks. However, the multiplicity of mandates and instruments involves a risk of …Read More

Wren-Lewis,Simon, (2016), “A general theory of austerity”, BSG-WP-2016/014, May 2016 Austerity is defined as a fiscal contraction that causes a significant increase in aggregate unemployment. For the global economy, or an economy with a flexible exchange rate, or a monetary union as a whole, an increase in unemployment following a fiscal consolidation can and should be avoided because monetary policy can normally offset the demand impact of the consolidation. The tragedy of …Read More

Paczos, Wojtek, Shakhnov,Kirill, (2016), “Sovereign debt issuance and selective default”, EUI Working Paper ECO 2016/04 We propose a novel theory to explain why sovereigns borrow on both domestic and international markets and why defaults are mostly selective (on either domestic or foreign investors). Domestic debt issuance can only smooth tax distortion shocks, whereas foreign debt can also smooth productivity shocks. If the correlation of these shocks is sufficiently low, the …Read More

Gama Nogueira, André, (2016), “Three essays in labour economics”, Florence : European University Institute, 2016 This thesis investigates labour market policies and the way they interact with labour market frictions. The first chapter of this thesis is dedicated to the introduction of a new method to measure skills mismatch in the labour market. By introducing a new index that uses employment distribution across sectors to measure labour demand and education distribution …Read More

Munkacsi Zsuzsa, (2016), “Fiscal austerity, unemployment and family firms”, Deutsche Bundesbank Discussion Paper; 2015/06 I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian framework with search and matching frictions, and, as an innovation, in the presence of sectoral heterogeneity. Family and non-family firms behave differently in the labor market and are differently managed. This latter assumption is modeled by the inclusion of intangible capital in the …Read More

U. Michael Bergman, Michael M. Hutchison, Svend E. Hougaard Jensen, (2016), “Promoting sustainable public finances in the European Union: The role of fiscal rules and government efficiency”, European Journal of Political Economy, 3 May New indices of fiscal rule strength are constructed and, using a dynamic panel econometric model for 27 EU countries over the period 1990–2012, we assess whether national fiscal rules alone help to promote sustainable public finances in the EU …Read More

Ozlem Onaran, Thomas Obst, (2016), “Wage-led growth in the EU15 member-states: the effects of income distribution on growth, investment, trade balance and inflation”, Camb. J. Econ. 2016 This paper estimates a multi-country demand-led growth model for the EU15. A decrease in the share of wages in national income in isolation leads to lower growth in Finland, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom, …Read More

Tymoigne, Eric, (2016), “Government monetary and fiscal operations: generalising the endogenous money approach”, Cambidge Journal of Economics, May The traditional endogenous money approach can be generalised substantially by including the insights of Modern Money Theory regarding the necessary coordination of fiscal and monetary policies. A monetarily sovereign government is composed of two entities involved in the issuance and redemption of government monetary instruments. As such, one should include the role …Read More