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Durable consumption during recessions

Berger, D. & Vavra, J. (2014) “Durable consumption during recessions“, VoxEU Organisation, 03 July.   Various stimulus programmes have been implemented in a response to the decline in consumption of durables since the Recession. This column argues that standard analysis of such programmes could be overstating their effectiveness. Aggregate durable spending is much less responsive to stimulus during recessions. Microeconomic frictions lead households to adjust their durable holdings less frequently. …Read More

The euro crisis: Muddling through, or on the way to a more perfect euro union?

Aizenman, J. (2014) “The euro crisis: Muddling through, or on the way to a more perfect euro union?“, VoxEU Organisation, 03 July.   After a promising first decade, the Eurozone faced a severe crisis. This column looks at the Eurozone’s short history through the lens of an evolutionary approach to forming new institutions. German dominance has allowed the euro to achieve a number of design objectives, and this may continue …Read More

The EU Services Directive: Gains from Further Liberalization

Fernández Corugedo. Ε. & Pérez Ruiz, Ε. (2014) “The EU Services Directive: Gains from Further Liberalization“, IMF Working Paper No. 14/113, 01 July.   The EU Services Directive was adopted in 2006 to foster competition in services across Europe. However, progress in liberalizing services has fallen short of expectations due to the article 15 of the Directive, which allows countries to maintain pre-existing restrictions if judged necessary to protect the …Read More

The EMS Crisis of the 1990s: Parallels with the present crisis?

Gros, D. (2014) “The EMS Crisis of the 1990s: Parallels with the present crisis?“, Economic Policy, CEPS Working Documents, 28 March.   The EMS crisis of the 1990s illustrated the importance of a lack of confidence in price or exchange rate stability, whereas the present crisis illustrates the importance of a lack of confidence in fiscal sustainability. Theoretically the difference between the two should be minor since, in terms of …Read More

Why Europe Needs Two Euros, Not One

Melitz, J. (2014) “Why Europe Needs Two Euros, Not One“, VoxEU Organisation, 02 July.   As the Eurozone cautiously implements stabilising reforms, Germany is forced to go further with concessions than it would prefer. This column suggests that it would be beneficial for discontented members to consider the formation of a second monetary union. The second euro can be constructed better than the first, bringing the discontented members exchange-rate adjustments …Read More

Low interest rates and secular stagnation: Is debt a missing link?

Borio, C. & Disyatat, P. (2014) “Low interest rates and secular stagnation: Is debt a missing link?“, VoxEU Organisation, 25 June.   Real interest rates have fallen to historic lows, and some economists are concerned that an era of secular stagnation has begun. This column highlights the role of policy frameworks and financial factors – particularly debt – in linking low real interest rates and sluggish economic growth. Policies that …Read More

The new European Parliament: Workable but impaired?

Piedrafita, S. & Lannoo, K. (2014) “The new European Parliament: Workable but impaired?“, Politics and Institutions, CEPS Commentaries, 27 June.   Given that the new European Parliament will be more Eurosceptical, radical and fragmented than its predecessors, Sonia Piedrafita and Karel Lannoo warn that it will face even tougher constraints in building the necessary majorities to pass legislation and adopt decisions. They argue in this new Commentary that this grave …Read More

Europe’s Digital Reactionaries

Waterworth, J. (2014) “Europe’s Digital Reactionaries“, Project Syndicate, 01 July.   Many European politicians praise the Internet. Unfortunately, their lofty rhetoric often rings hollow. While calling for a strong digital agenda in one breath, the same politicians, supported by protectionist interests at home, often argue for putting a brake on the Internet’s “disruption” by imposing strict new regulation. Such double-talk is misguided. If Europe is to prosper in the twenty-first …Read More

The UK has been one of the main beneficiaries from free movement of labour in the EU

Favell, A. (2014) “The UK has been one of the main beneficiaries from free movement of labour in the EU“, LSE EUROPP, 01 July.   Free movement of labour across the EU has become a controversial issue in several European countries, with parties such as UKIP and the Front National calling for restrictions on EU immigration. Adrian Favell writes on the debate over the issue within the UK. He argues …Read More

In response: Aligning national interests in Europe’s monetary union – answering comments on my Opinion ‘Europe has wasted a good crisis

Mody, A. (2014) “In response: Aligning national interests in Europe’s monetary union – answering comments on my Opinion ‘Europe has wasted a good crisis’“, Bruegel Institute, 01 July.   In my opinion published on Friday, I argued that a growing east-west divide, a core-periphery rift, the rise of extremist parties and the adoption of extremist rhetoric and their policy agenda by the mainstream parties are reshaping the concept of Europe. …Read More