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Fixed exchange rates with escape clauses: The political determinants of the European Monetary System realignments

Bodea, Cristina, (2015), “Fixed exchange rates with escape clauses: The political determinants of the European Monetary System realignments”, European Journal of Political Economy, Volume 39, September This paper studies the political economy of realignments to fixed exchange rates and suggests that the use of realignments is less likely when there are political benefits from stable exchange rates and when linkages across other issue areas increase the costs of realignment. More …Read More

Avoiding Another Crisis in the Euro Area: Public and Private Imbalances and National Policy Responses

Kincaida, Russell, Watson, Max, (2015), “Avoiding Another Crisis in the Euro Area: Public and Private Imbalances and National Policy Responses”, Journal of European Integration, 1 September Early critics of the euro’s design pointed to the disruptive potential — both political and economic — of country-specific shocks in a monetary union that is a far cry from an optimal currency area. The euro crisis has confirmed the risks associated with a …Read More

Filling the gap: open economy considerations for more reliable potential output estimates

DARVAS, ZSOLT, SIMON, ANDRÁS, (2015), “Filling the gap: open economy considerations for more reliable potential output estimates”, Bruegel publications, 22 October This paper proposes a novel structural model to estimate the equilibrium level of output and reports results for 45 countries. The model is conceptually more appropriate than existing methods by incorporating open economy considerations, which are completely missing from the models of the European Commission, IMF and OECD. Relevant …Read More

Free movement of labour in Europe: a solution for better labour allocation?

Galgóczi, Béla, Leschke, Janine, (2015), “Free movement of labour in Europe: a solution for better labour allocation?”, European Trade Union Institute, June The European Commission has time and again promoted intra-EU labour mobility as a major contributor to the better functioning of European labour markets. On the other hand, concerns about increasing labour mobility are mounting in a number of member states and populist parties are trying to capitalise on …Read More

The public-private sector pay debate in Europe

Müller, Torsten, Schulten, Thorsten, (2015), “The public-private sector pay debate in Europe”, European Trade Union Institute, August This Working Paper critically reviews the empirical evidence and the basic assumptions on which European and national policymakers base their strategy of cutting and freezing public sector pay as one central element of the current crisis management. Using comparative studies and new statistical data, the paper demonstrates that these assumptions are wrong, as …Read More

Financial industry mobilisation and securities markets regulation in Europe

Chalmers, Adam William, (2015), “Financial industry mobilisation and securities markets regulation in Europe”, European Journal of Political Research, Issue 3, Volume 54, August The 2007–2009 financial crisis has led to considerable debate about the role of financial industry actors in global regulatory processes. This article seeks to contribute to this debate by assessing when and why financial industry actors mobilise in order to influence securities markets regulations. Do these mobilisation …Read More

Dealing with Systemic Sovereign Debt Crises: Fiscal Consolidation, Bail-ins or Official Transfers?

Sandri, Damiano, (2015), “Dealing with Systemic Sovereign Debt Crises: Fiscal Consolidation, Bail-ins or Official Transfers?”, IMF Working Paper, WP/15/223, 16 October The paper presents a tractable model to understand how international financial institutions (IFIs) should deal with the sovereign debt crisis of a systemic country, in which case private creditors’ bail-ins entail international spillovers. Besides lending to the country up to its borrowing capacity, IFIs face the difficult issue of how to …Read More

Labour Mobility and Labour Market Adjustment in the EU

Arpaia, Alfonso, Kiss, Aron, Palvolgyi, Balazs,Turrini, Alessandro, (2015), “Labour Mobility and Labour Market Adjustment in the EU”, Institute for Study of Labour (IZA), Αugust This paper assesses macroeconomic determinants of labour mobility and its role in the adjustment to asymmetric shocks. First, the paper develops stylised facts of mobility at the national and sub-national levels in the EU. Then, it explores the macroeconomic determinants of bilateral migration flows. Econometric evidence …Read More

Germany and the Euro-Zone Crisis: The European Reformation of the German Banking Crisis and the Future of the Euro

Thompson, Helen, (2015), “Germany and the Euro-Zone Crisis: The European Reformation of the German Banking Crisis and the Future of the Euro”, New Political Economy, Issue 6, Volume 20, May Analysis of the German response to the euro crisis has been framed around a narrative of the relationship between domestic sacrifice and hegemony and sustains an assumption that the German commitment to the euro is proven. Such analysis downplays the importance …Read More

The Microeconomic Dimensions of the Eurozone Crisis and Why European Politics Cannot Solve Them

Thimann, Christian, (2015), “The Microeconomic Dimensions of the Eurozone Crisis and Why European Politics Cannot Solve Them”, Journal of Economic Perspectives, Issue 3, Volume 29, summer The academic and policy debate about the crisis in Europe’s single currency area is usually dominated by macroeconomic and public sector considerations. The microeconomic dimensions of the crisis and the private sector issues typically get much less attention. However, it is the private sector …Read More