European Central Bank, (2016), “Business investment developments in the euro area since the crisis”, ECB Publications, 31 October Business investment is both an important driver of the business cycle and a determinant of future growth prospects. While recovering less than in other advanced economies, the ratio of euro area real business investment to value added has recently surpassed its historical average. The recovery in investment is being driven by a combination …Read More
An anatomy of inclusive growth in Europe
Darvas, Zsolt, B.Wolf, Guntram, (2016), “An anatomy of inclusive growth in Europe”, Bruegel, 27 October This Blueprint offers an in-depth analysis of inequalities of income and wealth in the EU, as well as their causes and consequences. How evenly are the benefits of growth distributed in our economies, and what does this mean for fairness and social mobility? How could and should policymakers react? Relevant Posts Ilzkovitz, Fabienne, Dierx, Adriaan, (2016), …Read More
An Italian take on banking crisis
Merler, Silvia, (2016), “An Italian take on banking crisis”, Bruegel, 27 October The year 2016 has not been good to Italian banks. While resilient to the first wave of financial crisis in 2008, due to their low exposure to US sub-prime products and to the fact that Italy did not have a pre-crisis housing bubble, they have been suffering much from the euro sovereign crisis and the ensuing deteriorating economic …Read More
Library » EU » Economy » Policy Papers
Why unconventional monetary policy works in theory
Farmer, Roger, Zabczyk, Pawel, (2016), “Why unconventional monetary policy works in theory”, VoxEu, 26 October Ben Bernanke famously quipped that monetary policy works in practice, but not in theory. This column bridges the gap between practice and theory in assessing how central banks can influence both of them by intervening in asset markets. To the extent that asset market volatility is driven by shifts in beliefs, the central bank should …Read More
Library » EU » Economy » Policy Papers
Private sector debt matters, and better data means better policy
Lehmann, Alexander, (2016), “Private sector debt matters, and better data means better policy”, Bruegel, 27 October Private debt is emerging as a central concern in EU policy. However, the Commission’s regular country reports still give more attention to sovereign than private debt – even though there is always a risk that private liabilities will be socialised. Consistent and more detailed indicators of private debt distress could offer a more effective …Read More
Library » EU » Economy » Policy Papers
Understanding bank payouts during the financial crisis of 2007-2009
Cziraki, Peter, Laux, Christian, Lóránth, Gyöngyi, (2016), “Understanding bank payouts during the financial crisis of 2007-2009”, VoxEu, 26 October Banks’ payout decisions at the beginning of the financial crisis of 2007-2009 were particularly controversial as the crisis eroded the capital of many banks. Concerns were raised that banks may have engaged in wealth transfer to shareholders, or that they may have been reluctant to reduce dividends to avoid negative signalling. …Read More
Library » EU » Economy » Opinion Articles
Taking Monetary Policy to the People
Davies, Howard, (2016), “Taking Monetary Policy to the People”, Project Syndicate, 25 October For the last 20 years, central-bank independence has marked a kind of “end of history” for monetary policy, after many other regimes were tried and failed. In the years before the 2008 global financial crisis, independent central banks were seen as successful in controlling inflation; and countries with sizable fiscal deficits were especially enthusiastic about central-bank independence …Read More
Library » EU » Economy » Opinion Articles
Should we rethink fiscal policy?
Merler, Silvia, (2016), “Should we rethink fiscal policy?”, Bruegel, 24 October What’s at stake: there has been quite some discussion recently on whether we should rethink the framework of fiscal policy in order to make it more appropriate and effective in a world where demand seems to be chronically anemic, inflation is low and the interest rates are likely to stay close to zero (if not negative) for a long …Read More
Library » EU » Economy » Opinion Articles
Accessing sovereign markets – the recent experiences of Ireland, Portugal, Spain, and Cyprus
Strauch, Rolf, Rojas, Juan, O’Connor, Frank, Casalinho, Cristina, de Ramón-Laca Clausen, Pablo, Kalozois, Phaedon, (2016), “Accessing sovereign markets – the recent experiences of Ireland, Portugal, Spain, and Cyprus“, ESM Discussion Paper Series, June Every European government needs market access. It needs to be able to finance itself at affordable prices on financial markets. To most, market access seems unproblematic and is normally taken for granted. The daily work of Debt Management Offices …Read More
Breaking the vicious circle
Véron, Nicolas, (2016), “Breaking the vicious circle”, Bruegel, 21 October The eurozone’s banking union has moved from vision to reality in a short period of time, with the European Central Bank now an established supervisory authority for the area’s large banks. This has already made a big difference to the many national banking champions that local supervisors had been treating with kid gloves. But the banking union’s ultimate policy goal, …Read More
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