Beck, Thorsten, (2017), “An asset management company for the Eurozone: Time to revive an old idea”, Vox Eu, 24 April The idea of an asset management company for the Eurozone is not new. It is based on the observation that bank fragility across several Eurozone countries, including Ireland, Spain, and Italy, has been at the core of the crisis. In addition, bank fragility has put sovereigns under pressure as well …Read More
Christou, Georgios, Chronis, Panagiotis (2017), “Markups And Fiscal Policy: Analytical Framework And An Empirical Investigation”, Τράπεζα Της Ελλάδος, Μάρτιος 2017 The paper focuses on the effects of fiscal policy on the industry-specific profit margin of a sector of an economy. This is a deviation from the existing literature, which focuses mainly on the effects of fiscal policy on the profit margin of the economy as a whole. In this work the …Read More
Da Costa Cabral, Nazare, (2016), “Which Budgetary Union for the E(M)U?”, Journal of Common Market Studies 54(6), 1280-1295, 30 June This article considers whether the creation of a budgetary union in the European EMU (economic and monetary union) is a feasible and suitable way to resolve the current impasse created by the euro crisis. The article begins by identifying the major drawbacks concerning the transposition of prescriptions regarding fiscal federalism …Read More
Blinder, Alan, Ehrmann, Michael, de Haan, Jakob, Jansen, David-Jan, (2017), ” Necessity as the mother of invention: monetary policy after the crisis”, ECB Working Paper Series No 2047, April We ask whether recent changes in monetary policy due to the financial crisis will be temporary or permanent. We present evidence from two surveys—one of central bank governors, the other of academic specialists. We find that central banks in crisis countries are more likely to …Read More
Huertas, Thomas, (2017), “Eligibility easing and the lender of last resort” , Vox Eu, 21 April 2017 Few issues are as important or as controversial as the lender of last resort (Bank for International Settlements 2014). Indeed, this function is arguably what makes central banking central to the financial system, and to the economy at large. As is well known, the lender of last resort (LOLR) function played a key role at …Read More
Eurostat/Production in construction up by 6.9% in euro area up by 4.4% in EU28/24 April 2017 In February 2017 compared with January 2017, seasonally adjusted production in the construction sector increased by 6.9% in the euro area (EA19) and by 4.4% in the EU28, according to first estimates from Eurostat, the statistical office of the European Union. In January 2017, production in construction fell by 2.4% in the euro area and …Read More
Bloomberg View, (2017), “How to Break Europe’s Financial ‘Doom Loop’”, 21 April The euro-zone economy is looking a lot healthier. After years of stagnation, growth has finally picked up and unemployment is falling. Fears of a paralyzing bout of deflation have receded as well. Yet there’s a risk of relapse — and Europe’s banking “doom loop” is the reason. Relevant Posts Honohan, Patrick, (2017), “Management and Resolution of Banking Crises: …Read More
Gaspar,Vitor, Eyraud, Luc, (2017), “Five Keys to a Smart Fiscal Policy”, IMFBlog, 19 April Today’s conditions require new, more innovative solutions, which the IMF calls smart fiscal policies. By smart policies we mean policies that facilitate change, harness its growth potential, and protect people who are hurt by it. At the same time, excessive borrowing and record levels of public debt have limited the financial resources available to government. So, …Read More
Eurostat/Euro area international trade in goods surplus €17.8 bn/19 April 2017 The first estimate for euro area (EA19) exports of goods to the rest of the world in February 2017 was €170.3 billion, an increase of 4% compared with February 2016 (€163.2 bn). Imports from the rest of the world stood at €152.6 bn, a rise of 5% compared with February 2016 (€144.9 bn). As a result, the euro area …Read More
Miller,Marcus, Ghosal,Sayantan, (2017), “A new bargaining perspective on sovereign debt restructuring”, VoxEU, 17 April Lacking some supra-national, overseeing authority, sovereigns in default typically renegotiate with their creditors. In these negotiations, the owed principal typically receives a ‘haircut’. This column explores whether overburdened sovereign debtors can strategically leverage delay as they bargain with their creditors. Under asymmetric information, a delay in the form of offers that the debtor knows won’t be …Read More
