Willem Pieter de Groen, (2018), “Cash Outflows in Crisis Scenarios”, 17 April The large majority of the more than €2.5 trillion of public and monetary support that euro area banks received between 2008 and 2016 was in the form of liquidity support. Liquidity, however, has not been adequately addressed in the legislative overhaul following the global financial crisis. This paper focuses on liquidity at the moment when the need for …Read More
International transmission of monetary policy via banks: New cross-country evidence from the International Banking Research Network
Claudia Buch, Matthieu Bussière, Linda Goldberg, Robert Hills, (2018), “International transmission of monetary policy via banks: New cross-country evidence from the International Banking Research Network”, VoxEU, 20 April The channels through which one country’s monetary policy affects the international economy are still not that well understood. This column presents findings from latest project of the International Banking Research Network, which reveal that monetary policy spillover effects via bank lending are …Read More
The Interplay between Financial Regulations, Resilience, and Growth
Franklin Allen, Itay Goldstein, Julapa Jagtiani, (2018), “The Interplay between Financial Regulations, Resilience, and Growth”, CEPR, April Interconnectedness has been an important source of market failures, leading to the recent financial crisis. Large financial institutions tend to have similar exposures and thus exert externalities on each other through various mechanisms. Regulators have responded by putting more regulations in place with many layers of regulatory complexity, leading to ambiguity and market …Read More
Rethinking the Twenty-First-Century Economy
Margareta Drzeniek-Hanouz, (2018), “Rethinking the Twenty-First-Century Economy”, Project Syndicate, 16 April With the rise of digital technologies and big data, the global economy is undergoing a fundamental transformation that poses significant challenges to governments and policymakers. Unless tools are developed to measure new sources of value in the real economy, current and future generations’ wellbeing will be in jeopardy. For governments to cope with these mounting pressures, they will need to …Read More
The limits of central bank cooperation: Evidence from the Gold Pool (1961-1968)
Michael Bordo, Eric Monnet, Alain Naef, (2018), “The limits of central bank cooperation: Evidence from the Gold Pool (1961-1968)”, 18 April Central bank cooperation has once again become a central issue amid the Global Crisis and the persistence of global imbalances, but there are few examples of successful cooperation schemes that survived the test of time. This column argues that the Gold Pool of 1961-1968 offers a unique example of …Read More
The impact of the Brexit vote on European Capital Markets Union
Miranda Xafa, (2018), “The impact of the Brexit vote on European Capital Markets Union”, VoxEU, 18 April The Brexit vote was a clear setback in the effort to integrate European capital markets. It slowed down the implementation of the Capital Markets Union agenda to avoid pre-empting the Brexit negotiations, and risks an inefficient break-up in the activities of clearing houses that deal in euro-denominated securities. This column, the second in …Read More
It may get worse before it gets better: The short-term employment consequences of structural reforms
Andrea Bassanini, Federico Cingano, (2018), “It may get worse before it gets better: The short-term employment consequences of structural reforms”, VoxEU, 16 April Structural reforms feature prominently in the political agenda of many countries in a bid to promote and sustain economic growth. And yet, the pace of reforms slowed down during the recent recession and subsequent sluggish recovery, both in developed and emerging economies (OECD 2016, IMF 2016a). These …Read More
The effective lower bound and the desirability of gradual interest rate adjustments
Sebastian Schmidt, (2018), “The effective lower bound and the desirability of gradual interest rate adjustments”, ECB, Research Bulletin No. 45, 13 April The lower bound on nominal interest rates makes it desirable for monetary policy to aim for gradual adjustments of the policy rate in addition to the stabilisation of inflation and the output gap. In a situation where the economy is in recession, inflation is below target, and the …Read More
The post-crisis TFP growth slowdown in CEE countries: exploring the role of Global Value Chains
Francesco Chiacchio, Katerina Gradeva, Paloma Lopez-Garcia, (2018), “The post-crisis TFP growth slowdown in CEE countries: exploring the role of Global Value Chains”, Working Paper Series, No 2143 / April 2018 Using micro-aggregated firm information for nine Central and Eastern European (CEE) countries and data from input-output tables, we examine the role of Global Value Chains (GVCs) for technology diffusion across EU countries. Our empirical results provide support for a two-stage diffusion …Read More
Where Does the ECB Go From Here?
Mervyn King, (2018), “Where Does the ECB Go From Here?”, BloombergView, 16 April Europe’s central bank is an unavoidably political organization I once congratulated Mario Draghi on his performance as president of the European Central Bank, telling him he had made only one mistake. “What’s that?” came the instant question. “Taking the job,” I replied. My point was that by the time Draghi was appointed, the ECB could no longer …Read More