Acemoglu, D., Ozdaglar, A. & Tahbaz-Salehi, A. (2015) “Microeconomic origins of macroeconomic tail risks, VoxEU Organisation, 27 March.   Understanding large economic downturns is one of macroeconomics’ central goals. This column argues that imbalances in input-output linkages can interact with firm-level shocks to produce output fluctuations that are much larger than the underlying shocks. The result can be large cycles arising from small, firm-level shocks. It is thus important to …Read More

Mitchell, B. (2015) “Eurozone unemployment – little to do with international competitiveness“, Bill Mitchell Blog, 21 March.   The so-called ‘Informal European Council’ released a document on February 12, 2015 – Preparing for Next Steps on Better Economic Governance in the Euro Area: Analytical Note – which has been used as a background paper to batter the Greeks into submission in the latest round of the Eurozone crisis. It was …Read More

Boeri, T., Garibaldi, P. & Moen, R. E. (2015) “Labour and finance in the aftermath of the Great Recession“, VoxEU Organisation, 19 March.   The Great Recession sparked the interest in the link between financial conditions and employment. This column describes results from a new model of labour and finance, incorporating financial imperfections and borrowing constraints. The results uncover a complementarity between firms holding cash and labour market imperfections. Firms …Read More