Dullien, S. (2014) “Why A European Unemployment Insurance Would Help To Make EMU More Sustainable“, Social Europe Journal, 03 October. Since the onset of the euro-crisis, the old debate pertaining to the supra-national stabilisers in the euro-area has gained new relevance. While economic textbooks have long stipulated that countries forming a monetary union need an alternative mechanism for dealing with asymmetric shocks and even the early feasibility studies on …Read More
Austerity Tales: the Netherlands and Italy
Mazzolini, G. & Mody, A. (2014) “Austerity Tales: the Netherlands and Italy“, Bruegel Think Tank, 03 Οκτωβρίου. The analysis in this article warns that the deflation is likely to be a country-specific phenomenon, requiring counter measures at the country level In 2008 and early-2009, most euro area countries joined in an internationally-coordinated stimulus of the global economy to ward off the menacing crisis. But by late-2009, especially after the …Read More
The German Constitutional Court’s decision on OMT: Have markets misunderstood?
Siekmann, H. & Wieland, V. (2014) “The German Constitutional Court’s decision on OMT: Have markets misunderstood?“, Centre for Economic Policy Research, Policy Insight No. 74, Οκτώβριος. The European Central Bank’s announcement of the Outright Monetary Transactions (OMT) program in summer 2012 is widely credited, not least by the ECB itself, as a key factor in the subsequent decline of sovereign risk premia in the Eurozone. Following the February 2014 …Read More
Where danger lurks
Blanchard, O. (2014) “Where danger lurks“, International Monetary Fund, Finance and Development, Σεπτέμβριος. The recent financial crisis has taught us to pay attention to dark corners, where the economy can malfunction badly Until the 2008 global financial crisis, mainstream U.S. macroeconomics had taken an increasingly benign view of economic fluctuations in output and employment. The crisis has made it clear that this view was wrong and that there is …Read More
Who is afraid of the Asset Quality Review? Potential Losses and Capital Shortfalls in the European Banking System
Bonczek, T., Fuest, C. & Schröder, M. (2014) “Who is afraid of the Asset Quality Review? Potential Losses and Capital Shortfalls in the European Banking System“, Centre for European Economic Research, Discussion Paper No. 14-074 , October. The creation of a banking union is widely seen as a key element of institutional reforms towards more financial and economic stability in Europe. Its objective is to improve the effectiveness of …Read More
Extending Taxation of Interest and Royalty Income at Source – an Option to Limit Base Erosion and Profit Shifting?
Finke, C., Fuest, C., Nusser, H. & Spengel, C. (2014) “Extending Taxation of Interest and Royalty Income at Source – an Option to Limit Base Erosion and Profit Shifting?“, Centre for European Economic Research, Discussion Paper No. 14-073, October. Abstract: This paper discusses tax policy measures to reduce corporate tax avoidance by extending taxation in the source country without imposing double taxation. We focus on four options: Bilaterally restricting …Read More
Prime Minister Matteo Renzi on Growth and Jobs in Italy – A Conversation With Matteo Renzi
Renzi, M. (2014) “Prime Minister Matteo Renzi on Growth and Jobs in Italy – A Conversation With Matteo Renzi“, Council on Foreign Relations (CFR), 24 September. PORAT: Good afternoon. My name is Ruth Porat, and I’m a member of the board of the Council and am delighted to welcome you here today to our meeting with Prime Minister Matteo Renzi. I’d also like to welcome the CFR members around …Read More
ECB Sovereign Bond Purchases Remain Unlikely
Kirkegaard, F. J. (2014) “ECB Sovereign Bond Purchases Remain Unlikely“, Peterson Institute for International Economics, 01 October. The European Central Bank (ECB) is reportedly on the cusp of another round of euro area sovereign bond purchases. Proponents of such a move say it is necessary if the ECB is to grow its balance sheet by the €750 billion to €1 trillion signaled by its president, Mario Draghi, on September …Read More
Debt Rattle Oct 1 2014: Europe Is Crumbling Into Collapse
Ilargi Meijer, Ρ. (2014) “Debt Rattle Oct 1 2014: Europe Is Crumbling Into Collapse“, The Automatic Earth, 01 October. For me, the quote of the day is this one: “If there’s a periphery of the eurozone’s periphery, that’s Naples.”. The city of Napoli hosts ECB boss Mario Draghi and the heads of Europe’s central banks this week in some very posh former Bourbon family royal palace, and the contradictions …Read More
Direct central bank purchases of government debt
Mitchell, B. (2014) “Direct central bank purchases of government debt“, Bill Mitchell Blog, 02 October. There was a recently published Federal Reserve Bank of New York Staff Report – Direct Purchases of U.S. Treasury Securities by Federal Reserve Banks – by Kenneth D. Garbade, which recounts the way the central bank in the US could purchase unlimited amounts of treasury debt by creating funds out of thin air and …Read More