Gros, Daniel, (2013), “The Meaning of Cyprus: Moving towards banking union?” CEPS, 8 April. While acknowledging that Cyprus is too small to matter for global financial markets, this Commentary finds that its case could turn out to become a very important precedent for the way European policy-makers deal with future banking problems and the plans for a ‘banking union’.
Micossi, Stefano, (2013), “How the EZ crisis is permanently changing EU institutions”, The Centre for Economic Policy Research, Policy Insight, N. 65. The Eurozone crisis has elicited oceans of comment and analysis related to crisis management. Much less noticed is the crisis’ deep impact on EU institutions. A series of decisions taken at crisis summits massively centralised EU executive power over national economic policymaking. These decisions also shifted the institutional …Read More
Dell’ Ariccia, Giovanni, Goyal, Rishi, Koeva-Brooks, Petya, Tressel, Thierry, (2013) “A banking union for the Eurozone”, www.voxeu.org , 5 April. The crisis has highlighted the need for, and difficulties with, a Eurozone banking union. This column argues that, to make a union, you need three crucial ingredients: common supervision, a single resolution mechanism, and common safety nets. The power to control and the resources to rescue must work in parallel. …Read More
Mueller , Jan-Werner, (2013), “Europe’s Political Stress Tests” , www.project-syndicate.org, 4 April. In recent years, the European Union – or, more accurately, the powerful countries of northern Europe – has been subjecting its weaker members to social and political “stress tests” in the name of fiscal rectitude. As a result, southern Europe and parts of Eastern Europe have become a kind of political laboratory, with experiments producing strikingly varied – …Read More
Aslund, Anders, (2013), “The Euro Crisis after Cyprus: What We Have Learned”, The Peterson Institute for International Economics, 3 April. Just as suddenly as it arose, the Cyprus financial crisis has passed by. The banks have opened and so has the stock market without undue panic. A few steps remain in the euro crisis, but this crisis is abating, and however messily Europe has handled it. Today, the questions are what …Read More
Brady, Hugo, (2013), “The EU’s Rubik’s cube: Who will lead after 2014?”, Centre for European Reform, 3 April. Next year, EU leaders will decide who will succeed Herman Van Rompuy, José Manuel Barroso and Catherine Ashton as, respectively, the next president of the European Council, president of the European Commission and high representative for foreign affairs. These (no doubt) excruciating deliberations will begin in earnest after the European Parliament (EP) …Read More
Scenario Team Eurozone 2020, (2013), “Future Scenarios for the Eurozone: 15 Perspectives on the Euro Crisis”, Friedrich Ebert Stiftung, March. The Eurozone is standing at a crossroads, facing the biggest challenges in its history: the systemic crisis and the political attempts to overcome it have far-reaching consequences for the future of the Economic and Monetary Union, European integration and Europe in the world. By identifying the main driving forces that …Read More
Pisani-Ferry, Jean, (2013), “The Politics of Moral Hazard”, www.project-syndicate.org, 30 March. It is an old and never-ending contest. On one side are the moral-hazard scolds, claiming that one of the major responsibilities confronting policymakers is to establish incentives that demonstrate that imprudent behavior does not pay. On the other side are the partisans of financial stability, for whom confidence in the financial system is too precious to be endangered, even …Read More
Blanchard, Olivier, Jaumotte, Florence and Loungani, Prakash, (2013), “Labor Market Policies and IMF Advice in Advanced Economies during the Great Recession”, International Monetary Fund, Staff Discussion Note, N.13/02. This paper does two things. First, it articulates what are the main implications of theoretical and empirical research for design of labor market policies and labor market institutions. Second, in this light, the paper analyzes the IMF’s labor market recommendations since the …Read More
Kirkegaard, Jacob, (2013), “Did Cyprus Set a Dangerous Precedent? Some Further Thoughts”, The Peterson Institute for International Economics, 29 March. The precedent of imposing losses on uninsured depositors in Laiki Bank and the Bank of Cyprus was a sound one, but that does not mean it will be a widely used one in the euro area—or that it puts the entire euro area banking system at risk of depositor runs. …Read More
