Wren-Lewis, S., (2014), “How the ECB could be Radical by being Old Fashioned”, Social Europe Journal, 20 January. Forward commitment could be sold not as a radical new policy, but a return to a very old one: money targeting. The one major central bank that did maintain a money targeting policy for more than a few years was the Bundesbank. Why is money targeting like a forward commitment policy? Because …Read More

Acharya V., and Steffen S., (2014), “Falling short of expectations? Stress-testing the European banking system”, Voxeu, 17 January. The Single Supervisory Mechanism – a key pillar of the Eurozone banking union – will transfer supervision of Europe’s largest banks to the ECB. Before taking over this role, the ECB will conduct an Asset Quality Review to identify these banks’ capital shortfalls. This column discusses recent estimates of these shortfalls based …Read More

Arestis Ph., and M. Sawyer, (2014), “‘Structural Reforms’ and Unemployment”, Triple Crisis, 16 January. There is little doubt that the “fiscal compact,” which has replaced the Stability and Growth Pact of the Economic and Monetary Union, reinforces an already-established neoliberal perspective on macroeconomic policy—with the emphasis on balanced budgets and an “independent” central bank only concerned with price stability. There is little doubt that the “fiscal compact,” which has replaced …Read More

Perotti, Enr., (2014), “The roots of shadow banking” , Voxeu, 16 January. The ‘shadow banking’ sector is a loose title given to the financial sector that exists outside the regulatory perimeter but mimics some structures and functions of banks. Relevant Posts Pozsar, Z., (2013), “Shadow banking and the global financial ecosystem” , VoxEU, 07 November. Gros, D., (2013), “The European Banking Disunion”, Project Syndicate, 06 November. Den Haan, W. ed., (2013), Forward Guidance: …Read More

Merler, S., Wolff, G., (2014), “2014 Financial Odyssey: How should the first steps of the banking union be implemented”, Voxeu, January. The European Banking Union matures in 2014, with the ECB assuming its role as single supervisor. This column outlines the transition to the new steady state. This will involve a comprehensive balance sheet assessment, new rules regarding recapitalisation, restructuring, and resolution, and the determination of how recapitalisation costs are …Read More

Monti, Mario, (2013), “Bridging the Gap Between Europe’s Economic Cultures” The Globalist, 19 December. For a few years now, I have felt as if I live intellectually in the Alps. That is because, in European debates and in the European Council, I have often acted as a sort of translator of the virtues of discipline into Mediterranean languages. At the same time, for the northern countries I have served as …Read More

Stiglitz, Joseph, (2013), “Advanced Malaise”, Project Syndicate, 13 January. Economics is often called the dismal science, and for the last half-decade it has come by its reputation honestly in the advanced economies. Unfortunately, the year ahead will bring little relief. Σχετικές αναρτήσεις Pissarides, C., (2013), “The Euro Should Be Growth Friendly or Be Dismantled”, Social Europe Journal, 16 December. Sinn, H.W., (2013), “Rescuing Europe from the Ground Up” , Project Syndicate, 21 …Read More

Buiter, W., (2014) “Why fiscal sustainability matters”, 10 January. Fiscal sustainability has become a hot topic as a result of the European sovereign debt crisis, but it matters in normal times, too. This column argues that financial sector reforms are essential to ensure fiscal sustainability in the future. Although emerging market reforms undertaken in the aftermath of the financial crises of the 1990s were beneficial, complacency is not warranted. In …Read More