Cohen-Setton, Jeremie, (2015), “The triumph of backward-looking economics”, Bruegel publications, 7 September What’s at stake: At a time when monetary policy makers have a hard time generating inflation despite credible monetary regime changes (e.g. Japan), it is tempting to argue that there is simply substantial inertia in inflation. In this modern version of the old debate about the relative merit between rational and adaptive expectations, the reinterpretation of Reagan-Volker era …Read More

Rieth, Malte, Fratzscher, Marcel, (2015), “Bank bailouts, monetary policy, and credit default risks in the Eurozone”, Voxeu, 6 September In a response the Crisis, the ECB provided liquidity to banks on a massive scale and intervened in sovereign debt markets. This column argues that bank bailout policies and non-standard monetary policies by the ECB had a significant impact on default risks of sovereigns and banks in the Eurozone. The results, however, show that neither …Read More

Dawson, Mark, (2015), “The Eurozone crisis has deeply eroded the EU’s accountability structures”, LSE blog, 7 September Greece’s confrontation with the Eurozone seems to follow a familiar pattern. We start with a realisation, often confirmed by leaked IMF reports, that the latest round of financial assistance is not working. First the blame game: for creditor countries and their commentariat supporters, it is because reforms have not been properly implemented; for the …Read More

Bloomberg  View, (2015), “Europe’s Economy Needs Action, Not Words”, 4 September European Central Bank President Mario Draghi is something of an expert at moving markets by doing nothing, and he showed his prowess again yesterday. He said the ECB stands ready to stimulate Europe’s sluggish economy further, but has no plans to do so right now. That was seen as dovish, so European stocks advanced, euro bond-yields declined, and the …Read More