Henriksen, E., Kydland, F. and Šustek, R., (2013), “Independent monetary policies, synchronised outcomes”, VoxEU, 02 October. The monetary policy for Eurozone members is one-size-fits-all in an economic area rife with economic differences. Does this really make a difference? This column argues that even if each EZ member state had a fully independent monetary authority, monetary policies would likely still appear highly synchronised across EZ members.   Relevant Posts Fernandes, S. …Read More

Vegh, C. and Vuletin, G., (2013), “Tax-policy procyclicality”, VoxEU, 01 October. Government spending is procyclical in developing countries, exacerbating the business cycle. However, an analysis of tax policy is also required in order to properly assess the overall stance of fiscal policy. This column presents recent research showing that tax policy tends to be procyclical in developing countries and acyclical in developed countries. Although some developing countries have managed to …Read More

Lizoain, D., (2013), “Notes on Internal Devaluation”, Social Europe Journal, 27 September. The Spanish government’s formula for exiting the crisis is called an internal devaluation. This is a euphemism. They are attempting a generalized reduction in wages that requires a weakening of collective bargaining. For this reason, it is worthwhile to explore the concept of internal devaluation in more detail. The theory and the historical evidence is profoundly weak. In …Read More