Nordvig, J., (2013), “Currency wars and the euro”, VoxEU, 25 November. Having promised to do ‘whatever it takes’ to ensure the survival of the euro, the ECB now faces the problem of record high unemployment combined with a strong currency. There is accumulating evidence that the ECB is more willing to fight currency appreciation than the Bundesbank would have been. Capital inflows have been a key source of recent upward …Read More

O’Neil , J. and Terzi, A., (2013), “Addressing competitiveness or financial fragmentation? – a false dilemma”, Bruegel, 22 November. In explaining competitiveness developments in the EU, use is being made of the World Economic Forum Global Competitiveness Indicator. However, in its aggregated form, this index risks conveying deceptive policy recommendations.  The sharp fall in competitiveness observed in programme countries throughout the crisis is to be attributed largely to financial stress …Read More

Janssen, R., (2013), “Structural Reforms – Be Careful What You Wish For!”, Social Europe Journal, 20 November. “Be bolder in tackling structural reforms”. It almost sounds like a line from the Star Trek television series but it is Commission President Barroso presenting the 2014 Annual Growth Survey (AGS) (see here). This then is the key message coming from the new AGS: Reforms, reforms and more reforms. However, before continuing on …Read More

Alonso, S., (2013), “The Eurozone is not suffering from an economic crisis, but a crisis of national politics”, LSE European Politics and Policy Blog, 20 November. One of the most worrying aspects of the Eurozone crisis has been its effect on democracy. Sonia Alonso argues that while the crisis has weakened democracy in several countries, particularly with regard to the implementation of austerity policies against public opposition, this should not …Read More

Coppola, F., (2013), “The ECB rate cut was driven by the needs of Germany, not the needs of the Eurozone”, LSE European Politics and Policy Blog, 19 November. Earlier this month, the European Central Bank cut its benchmark interest rate to a new low of 0.25 per cent, down from 0.5 per cent. Frances Coppola writes that the rate cut is unlikely to offer any help to the struggling economies …Read More

Spence, M., (2013), “What’s Stopping Robust Recovery?”, Project Syndicate, 19 November. The growth map of the global economy is relatively clear. The US is in a partial recovery, with growth at 1.5-2% and lagging employment. Europe as a whole is barely above zero growth, with large variations among countries, though with some evidence of painful re-convergence, at least in terms of nominal unit labor costs. China’s growth, meanwhile, is leveling …Read More

Beck, T. and Trebesch, C., (2013), “A bank restructuring agency for the Eurozone – cleaning up the legacy losses”, VoxEU, 18 November. Many Eurozone banks are still in a fragile state following the Global Crisis. This vulnerability will be highlighted as the ECB takes charge of bank supervision, and the EZ moves towards a banking union. This column proposes a Eurozone bank restructuring agency as a way to speed up …Read More

Wren-Lewis, S., (2013), “Central Banks and Financial Stability”, Social Europe Journal, 18 November. Inflation is significantly below 2% almost everywhere. In the US, Japan and the UK (even though in the UK inflation is still just above 2%) central banks are doing a great deal to get inflation back to 2%. Maybe not enough, but their goal is clear. The ECB is belatedly following the same path (although it remains …Read More