This site is for archive purposes. Please visit for latest updates
Go to Top


Safeguarding the euro as a currency beyond the state

Ad van Riet, (2016), “Safeguarding the euro as a currency beyond the state“, ECB Occasional Papers No 173 / Μάϊος This paper reviews the debate on the longer-term requirements for safeguarding the euro as a currency beyond the state that is anchored through collective governance instead of a central government. The strengthening of EU economic and financial governance in the wake of the euro area crisis goes a long way towards creating …Read More

Competition, Growth and Regulatory Heterogeneity in Europe’s Digital Economy

Matthias Bauer, Fredrik Erixon, (2016), “Competition, Growth and Regulatory Heterogeneity in Europe’s Digital Economy”, ECIPE Working paper No 2/2016, April Far too many policymakers in Europe have a confused vision about the policy conditions required for Europe to grow its digital economy. Their habits of thought – a sense of what is reasonable, necessary and inevitable – are now deeply embedded in the EU’s endeavours of digital policymaking. Digital underperformance, as frequently …Read More

The Euro Plus Monitor Spring 2016 Update

Holger Schmieding, (2016), “The Euro Plus Monitor Spring 2016 Update”, The Lisbon Council, 22 Μαϊου Europe can adjust. It has done so before. In the 1980s, Margaret Tatcher cured the “sick man of Europe.” In the 1990s, Scandinavian countries reformed their bloated welfare states. From 2004 to 2006, Germany turned its struggling economy into a new growth engine for Europe through serious labour market and welfare reforms. And, in many …Read More

Recent trends in euro area banks’ business models and implications for banking sector stability

Christoffer Kok, Csaba Móré, Monica Petrescu, (2016), “Recent trends in euro area banks’ business models and implications for banking sector stability”, ECB Financial Stability Review, May This special feature reviews recent trends in business model characteristics, discusses their relationship with bank stability and performance, and looks at how this relationship has changed over time, comparing the period before the crisis with the crisis years and the current situation.The financial crisis and …Read More

A deepened Single market for labour and digital innovation

Paul-Jasper Dittrich, (2016), “A deepened Single market for labour and digital innovation”, Jacques Delors Institut Policy Paper 164, 11 May 2016 Product market reforms in the digital sector can boost TFP-growth. The Digital Single Market (DSM) should become a cornerstone of future productivity growth. Several measures should be taken up to meet these objectives. The European Job Mobility Portal EURES could become a European employment agency in the long-term. National employment …Read More

Interaction between monetary policy and bank regulation: lessons for the ECB

Dąbrowski, Marek, (2016), “Interaction between monetary policy and bank regulation: lessons for the ECB”, CASE Networks Studies & Analyses No 480 2/2016 The European Central Bank (ECB) recently became engaged in macro-prudential policies and the micro-prudential supervision of the largest Euro area banks. These new tasks should help complete financial integration, and make the Euro area more resilient to financial instability risks. However, the multiplicity of mandates and instruments involves a risk of …Read More

Growing like Spain: 1995-2007

Manuel García Santana, Josep Pijoan-Mas, Enrique Moral-Benito, Roberto Ramos, (2016), “Growing like Spain: 1995-2007”, Voxeu, 23 May Spain enjoyed substantial growth in the decade prior to the Global Crisis, despite declining aggregate productivity. Recent research blames the poor productivity on different forms of a ‘financial resource curse’. This column argues that resource misallocation was particularly severe due to corruption and crony capitalism. This suggests future growth will require serious political reforms. Given …Read More

A general theory of austerity

Wren-Lewis,Simon, (2016), “A general theory of austerity”, BSG-WP-2016/014, May 2016 Austerity is defined as a fiscal contraction that causes a significant increase in aggregate unemployment. For the global economy, or an economy with a flexible exchange rate, or a monetary union as a whole, an increase in unemployment following a fiscal consolidation can and should be avoided because monetary policy can normally offset the demand impact of the consolidation. The tragedy of …Read More

Sovereign bond holdings in the euro area – the impact of QE

Pia Huttl, Silvia Merler, (2016), “Sovereign bond holdings in the euro area – the impact of QE”, Bruegel, 19 May Since the announcement of the QE programme by the European Central Bank (ECB) on 22 January 2015, national central banks have been buying government and national agency bonds. In this post we look at the effect of QE on sectoral holdings of government bonds, based on our recently updated dataset. In …Read More

Sovereign debt issuance and selective default

Paczos, Wojtek, Shakhnov,Kirill, (2016), “Sovereign debt issuance and selective default”, EUI Working Paper ECO 2016/04 We propose a novel theory to explain why sovereigns borrow on both domestic and international markets and why defaults are mostly selective (on either domestic or foreign investors). Domestic debt issuance can only smooth tax distortion shocks, whereas foreign debt can also smooth productivity shocks. If the correlation of these shocks is sufficiently low, the …Read More