Buti, M., Demertzis, M. & Nogueira Martins, J. (2014) “Delivering the Eurozone Consistent Trinity“, VoxEU Organisation, 30 March. Although progress has been made on resolving the Eurozone crisis – vulnerable countries have reduced their current-account deficits and implemented some reforms – more still needs to be done. This column argues for a ‘consistent trinity’ of policies: structural reforms within countries, more symmetric macroeconomic adjustment across countries, and a banking …Read More
Cross-country Insurance Mechanisms in Currency Unions
Van Beers, N., Bijlsma, M. & Zwart T. J., G. (2014) “Cross-country Insurance Mechanisms in Currency Unions”, Bruegel Institute, 27 March. Countries in a monetary union can adjust to shocks either through internal or external mechanisms. We quantitatively assess for the European Union a number of relevant mechanisms suggested by Mundell’s optimal currency area theory, and compare them to the United States. For this purpose, we update a number …Read More
The Eiffel Group: A political community to rebuild the architecture of the euro
Benassy-Quéré, A. & Vallee, S. (2014) “The Eiffel Group: A Political Community to Rebuild the Architecture of the Euro“, VoxEU Organisation, 27 March. The recent crisis has highlighted some problems in the current structure of the Eurozone, such as the lack of political integration. This column introduces the Eiffel group – a group of French experts – and its call for a ‘political community of the euro’. The economic …Read More
TARGET Balances, Bretton Woods, and the Great Depression
Bordo, M. (2014) “TARGET Balances, Bretton Woods, and the Great Depression“, VoxEU Organisation, 21 March. Since 2007, there has been a buildup of TARGET imbalances within the Eurosystem – growing liabilities of national central banks in the periphery matched by growing claims of central banks in the core. This column argues that, rather than signalling the collapse of the monetary system – as was the case for Bretton Woods …Read More
The Chartbook of Economic Inequality
Atkinson, T. & Morelli, S. (2014) “The Chartbook of Economic Inequality“, VoxEU Organisation, 26 March. Inequality – long ignored – is now centre stage in debate about economic policy around the globe. This column introduces the Chartbook of Economic Inequality, a summary of long-run changes in economic inequality for 25 countries over more than 100 years. Inequality – long ignored – is now centre stage in debate about economic …Read More
The ECB Should Do QE, Mario? Buy US Bonds, Not Eurobonds
Frankel, J. (2014) “The ECB Should Do QE, Mario? Buy US Bonds, Not Eurobonds“, Opinion Article, VoxEU Organisation, 24 March. The Eurozone needs to further ease monetary policy because under the current low inflation and high unemployment periphery countries need to suffer painful deflation. However, the ECB faces challenges other central banks do not face. This column proposes a way to overcome some of these hurdles. It argues that the …Read More
European Economic Forecast, Winter 2014
European Commission (2014) “European Economic Forecast, Winter 2014“, Directorate-General for Economic and Financial Affairs, February, Brussels. Europe’s economic recovery, which began in the second quarter of 2013, is expected to continue spreading across countries and gaining strength while at the same time becoming more balanced across growth drivers. As it is typical following deep financial crises, however, the recovery remains fragile. Nevertheless, recent positive economic news means that the …Read More
Fiscal Policy and Income Inequality
International Monetary Fund (2014) “Fiscal Policy and Income Inequality“, IMF Policy Paper, 23 January. EXECUTIVE SUMMARY: Fiscal policy is the primary tool for governments to affect income distribution. Rising income inequality in advanced and developing economies has coincided with growing public support for income redistribution. This comes at a time when fiscal restraint is an important priority in many advanced and developing economies. In the context of the Fund’s …Read More
How much is enough? The case of the Resolution Fund in Europe
Huertas, T. & Nieto, J. M. (2014) “How Much is Enough? The Case of the Resolution Fund in Europe“, Vox: Research-Based Policy Analysis & Commentary from Leading Economists, 18 March. The European Resolution Fund is intended to reach €55 billion – much less than the amount of public assistance required by individual institutions during the recent financial crisis. This column argues that the Resolution Fund can nevertheless be large …Read More
EU Launches Long-Awaited Overhaul of Megabank Regulation
Spellman, J. (2014) “EU Launches Long-Awaited Overhaul of Megabank Regulation“, The European Institute, EI Blog, January. The European Union’s long-delayed overhaul of megabank regulation now proposes curtailing or banning the riskiest financial activities in hopes of avoiding a repeat of the 2007-2009 global financial system meltdown. Until now, the post-crisis EU banking reforms had not acted to rein in “too big to fail” banks, focusing instead on establishing a …Read More