European Commission, (2017), “Challenges to integrated markets”, 2017 Fellowship Initiative Papers, 20 July DG ECFIN’s Fellowship Initiative 2016-2017 “Challenges to integrated markets” culminates and comes to a successful conclusion with the publication of the fellows’ contributed papers in DG ECFIN’s Discussion paper series. Against the background of increasing strains to economic integration at both the global and the European level, the Fellowship Initiative has brought together a group of outstanding …Read More
Seasonally adjusted government deficit down to 0.9% of GDP in the euro area
Eurostat/Seasonally adjusted government deficit down to 0.9% of GDP in the euro area/20 July 2017 In the first quarter of 2017, the seasonally adjusted general government deficit to GDP ratio stood at 0.9% in the euro area (EA19), a decrease compared with 1.1% in the fourth quarter of 2016. In the EU28, the deficit to GDP ratio stood at 1.0%, a decrease compared with 1.2% in the previous quarter. Relevant …Read More
A “Macroneconomic” Revolution?
Kaletsky, Anatole, (2017), “A “Macroneconomic” Revolution?”, Project Syndicate, 19 July Next month will mark the tenth anniversary of the global financial crisis, which began on August 9, 2007, when Banque National de Paris announced that the value of several of its funds, containing what were supposedly the safest possible US mortgage bonds, had evaporated. From that fateful day, the advanced capitalist world has experienced its longest period of economic stagnation …Read More
Government debt up to 89.5% of GDP in euro area
Eurostat/Government debt up to 89.5% of GDP in euro area/20 July 2017 At the end of the first quarter of 2017, the government debt to GDP ratio in the euro area (EA19) stood at 89.5%, compared with 89.2% at the end of the fourth quarter of 2016. In the EU28, the ratio also increased from 83.6% to 84.1%. Compared with the first quarter of 2016, the government debt to GDP …Read More
Change Is Coming at the ECB. Just Not Quickly.
Moss, Daniel, (2017), “Change Is Coming at the ECB. Just Not Quickly.”, Bloomberg View, 18 July The European Central Bank is wrestling with how to exit the super-accommodative policy that’s dominated Mario Draghi’s tenure as president. In trying to determine the path of this off-ramp, it might be instructive to look backward. To December of last year, to be precise. That’s when the ECB took what looks in retrospect like …Read More
Library » EU » Economy » Opinion Articles
The Re-Emerging Privilege of Euro Area Membership
Wiegand, Johannes, (2017), “The Re-Emerging Privilege of Euro Area Membership”, IMF Working Paper No. 17/162, 18 July When the euro was introduced in 1998, one objective was to create an alternative global reserve currency that would grant benefits to euro area countries similar to the U.S. dollar’s “exorbitant privliege”: i.e., a boost to the perceived quality of euro denominated assets that would increase demand for such assets and reduce euro …Read More
Workers of the Euro Area Rise Up and Ask for More Pay, Maybe
Tadeo, Maria, Look, Carolynn, (2017), “Workers of the Euro Area Rise Up and Ask for More Pay, Maybe”, Bloomberg Markets, 13 July Euro-area labor representatives are about to test whether the broadest economic growth in years can finally deliver a decent pay rise. Unions in the currency bloc’s largest nations, interviewed by Bloomberg this month, blame lackluster pay gains on dampened expectations among workers since the region’s financial crises, and …Read More
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The Politics of Germany’s External Surplus
Fuest, Clemens, (2017), “The Politics of Germany’s External Surplus”, Project Syndicate, 17 July The debate about global macroeconomic imbalances is increasingly focusing on Germany’s current-account surplus and economic policy. Despite the vitality of the German economic engine, and the role it plays in fueling growth and maintaining stability in the eurozone, criticism of the country’s massive external surplus is mounting. As the Economist put it recently, Germany “saves too much and spends too little,” …Read More
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Euro area international trade in goods surplus €21.4 bn
Eurostat/Euro area international trade in goods surplus €21.4 bn/14 July 2017 The first estimate for euro area (EA19) exports of goods to the rest of the world in May 2017 was €189.6 billion, an increase of 12.9% compared with May 2016 (€167.8 bn). Imports from the rest of the world stood at €168.1 bn, a rise of 16.4% compared with May 2016 (€144.4 bn). As a result, the euro area …Read More
Credit misallocation during the European financial crisis
Schivardi, Fabiano, Sette, Enrico, Tabellini, Guido, (2017), “Credit misallocation during the European financial crisis”, VoxEU, 18 July There is a widespread perception that under-capitalised banks can prolong crises by misallocating credit to weaker firms and restraining credit to healthy borrowers. This column explores the extent and consequences of credit misallocation in Italy during and after the Eurozone Crisis. Bank undercapitalisation may have been costly in terms of misallocation of capital and …Read More
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