Ferrett, Ben, Hoefele, Andreas, Wooton, Ian, (2016), “Does tax competition make mobile firms more footloose?”, Centre for Economic Policy Research, June Existing analyses of fiscal competition for foreign direct investment (FDI) often assume a one-shot interaction between governments and the firm within a static environment where the firm makes a permanent location choice. We examine a two-period regional model where economic geography evolves, giving the firm an incentive to relocate between periods. Government competition …Read More

Demertzis, Maria, (2016), “Are central bank(er)s still credible?”, Bruegel, 14 June Both the Fed and the ECB have managed to remain credible since the financial crisis, but their credibility levels have evolved differently. Since inflation in the US and the euro area has been similar in the past 8 years, the difference in the way that credibility has evolved is the result of the different macroeconomic policy mix applied. Relevant Posts …Read More

Adair Turner, (2016), “A Tale of Two Debt Write-Downs”, Project Syndicate, 10 June At the end of 2015, Greece’s public debt was 176% of GDP, while Japan’s debt ratio was 248%. Neither government will ever repay all they owe. Write-offs and monetization are inevitable, putting both countries in a sort of global vanguard. With total public and private debt worldwide at 215% of world GDP and rising, the tools on which …Read More

Muellbauer, John, (2016), “Helicopter money and fiscal rules”, Voxeu, 10 June The Eurozone faces a lost decade or worse under current fiscal policy and restrictions on monetary policy. The ECB now faces a fundamental contradiction in its mandate between the Lisbon Treaty’s Article 127 (price stability, plus the ECB target of under but close to 2% inflation) and Article 123 (no overt monetary finance of governments). This article discusses three options …Read More

Leandro, Álvaro, (2016), “The use of ECB liquidity”, Bruegel, 9 June The Eurosystem’s regular open market operations consist of one-week liquidity-providing operations (MROs), and three-month liquidity-providing operations (LTROs). We have updated data on the use of these operations by country. Relevant Posts Ippolito, Filippo,  Peydró, José-Luis, Polo, Andrea, Sette, Enrico, (2016),  “Double bank runs, liquidity risk management, and Basel III”, Voxeu, 10 Μay Garcia-de-Andoain, Carlos, Heider, Florian, Hoerova, Marie, Manganelli, Simone, (2016), “Lending-of-last-resort is as lending-of-last-resort does: Central bank …Read More

De Groen, Willem Pieter, Maselli, Ilaria, (2016), “The Impact of the Collaborative Economy on the Labour Market”, CEPS, 3 June The digitalisation of work is creating new ways of intermediating work, with for example platforms intermediating work between individuals online. These so-called online collaborative platforms have the potential to fundamentally change the labour market, but for the moment, with an estimated 100,000 active workers or 0.05% of total employees in the …Read More

Schoenmaker, Dirk, Véron, Nicolas, (2016), “European banking supervision: compelling start, lingering challenges”, Bruegel, 8 June The new European banking supervision system is broadly effective and, in line with the claim often made by its leading officials, tough and fair, but there are significant areas for future improvement. European banking supervision (also known as the Single Supervisory Mechanism) is the first step in Europe’s banking union. Some 18 months after its official start on …Read More