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Reforms for more and better quality jobs in Spain

Jin, Yosuke, Caldera Sánchez, Aida, Garcia Perea, Pilar, (2017), “Reforms for more and better quality jobs in Spain “, OECD Economics Department Working Papers, No 1386, 30  May The Spanish economy is growing strongly, but there is a risk that many people are being left behind. Unemployment, especially among young people and the low-skilled, remains very high. About half of all the unemployed have been unemployed for over a year …Read More

Is the recent increase in long-term interest rates a threat to euro-area recovery?

Clayes, Gregory, Efstathiou, Konstantinos, (2017), “Is the recent increase in long-term interest rates a threat to euro-area recovery?”, Bruegel, 29 May After reaching historically low levels in the first half of 2016, European long-term sovereign yields experienced a notable increase in the second half of 2016 and at the beginning of 2017, before stabilising in the last few months. The nominal long-term interest rate can be decomposed into the following components: …Read More

Business models of the banks in the euro area

Farne, Matteo, Vouldis, Angelos, “Business models of the banks in the euro area”, ECB, May 2017 The paper identifies the business models followed by banks in the euro area, utilising a proprietary dataset collected in the context of the supervisory reporting of the Single Supervisory Mechanism. The concept of a ‘business model’ has been neglected by economic theory and is defined here with respect to the set of activities performed by banks. …Read More

Bank bail-in: The effects on credit supply and real economy

Beck, Thorsten, Samuel Da-Rocha-Lopes, Samuel, Silva, Andre, (2017), “Bank bail-in: The effects on credit supply and real economy”, VoxEU, 26 May The new resolution and bail-in regime in Europe hypothetically lets banks fail without resorting to public funding. This column examines the effects of the bail-in of the Portuguese Banco Espírito Santo. Existing borrowers from the banks exposed to the bail-in experienced a negative impact on their credit supply from these …Read More

Bank resolution: The importance of a public backstop

Cecchetti, Stephen, Schoenholtz, Kim, (2017), “Bank resolution: The importance of a public backstop”, Vox Eu, 28 May 2017 The failure of Lehman on 15 September 2008, signalled the most intense phase of the Global Crisis of 2007-2009, fuelling a run on a broad array of intermediaries. Following Congress’ approval of the Troubled Asset Relief Program (TARP) funding that was used mostly to recapitalise US financial firms, the mantra of US regulators became …Read More

European Business: Overcoming Uncertainty, Strengthening Recovery

Bughin, Jacques, Labaye, Eric, Mattern, Frank, Smit, Sven, Windhagen, Eckart, Mischke, Jan, Bragg, Kate, (2017), “European Business: Overcoming Uncertainty, Strengthening Recovery”, Mckinsey Global Institute, May 2017 Since its founding in 1990, the McKinsey Global Institute (MGI) has sought to develop a deeper understanding of the evolving global economy. As the business and economics research arm of McKinsey & Company, MGI aims to provide leaders in the commercial, public, and social sectors …Read More

Financial Stability Review

ECB, (2017), “Financial Stability Review”, ECB, May The Financial Stability Review (FSR) assesses developments relevant for financial stability, including identifying and prioritising the main sources of systemic risk and vulnerabilities for the euro area financial system – comprising intermediaries, markets and market infrastructures. It does so to promote awareness of these systemic risks among policymakers, the financial industry and the public at large, with the ultimate goal of promoting financial stability. …Read More

How Portugal’s leaders exploited the bail out to pass measures they already supported

Moury, Catherine, Standring, Adam, (2017), “How Portugal’s leaders exploited the bail out to pass measures they already supported”, EUROPP, May We recently conducted both an analysis of official statements and interviews with many of the main political actors that were in power during the sovereign debt crisis in Portugal (2010-2015). Our research highlights that both the crisis and the bailout made the executive stronger in relation to other domestic actors. Consequently, when …Read More

Financial integration in the Eurozone should not be a tough sell

Brosens, Teunis, (2017), “Financial integration in the Eurozone should not be a tough sell”, Vox Eu, 24 May Much progress has been made in recent years to improve the financial integration of the Eurozone. Banking union is the most important example. Increasing stability is an important objective. But let us not forget that an integrated financial market also helps European consumers and companies in a more direct way. A fully equipped …Read More

Welfare: Savings not taxation

Douglas, Roger, MacCulloch, Robert, (2017), “Welfare: Savings not taxation”, Vox Eu, 25 May Across many countries, the cost of publicly funded healthcare, retirement, and other welfare programmes are forecast to put rising pressure on government budgets. As a result, many nations are seeking to reform their welfare states so that costs to the government can be reduced, quality of outcomes increased, and the plight of low- and middle-income earners improved. Regrettably …Read More