Roth, Felix, Jonung, Lars, Nowak-Lehmann, Felicitas, (2012), ‘Crisis and public support for the euro’, www.voxeu.org, 5 November. The Eurozone crisis has meant slow growth, rising unemployment, and social unrest. This column gauges the impact of all this on European citizens‘ opinions about the euro and EU institutions. Using Eurobarometer surveys, the authors find that, within the Eurozone, the crisis has only marginally lowered support for the euro but has led to …Read More
An optimistic case for the Euro
Feldstein, Martin, (2012), ‘An optimistic case for the Euro’, www.project-syndicate.org, 30 October. The prospects for the euro and the eurozone remain uncertain. But recent events at the European Central Bank, in Germany, and in global financial markets, make it worthwhile to consider a favorable scenario for the common currency’s future.
How would Portugal have fared in the past decade under the debt rule?
Capone-Parisi, Elisa, (2012), ‘How would Portugal have fared in the past decade under the debt rule?’, www.economonitor.com, 29 October. Portugal was the second country (after Greece) to ratify the fiscal compact treaty (together with the ESM). The fiscal compact will be implemented under the auspices of the European Court of Justice which will monitor the national rule’s compliance with the treaty.
The Policy Mix and Macroeconomic Adjustment in the Euro Area
Mortensen, Jorgen, Alcidi Cinzia, (2012), ‘The Policy Mix and Macroeconomic Adjustment in the Euro Area’, www.ceps.be, 16 October. Αccording to the most recent IMF World Economic Outlook (WEO),1 the recovery has suffered new setbacks and uncertainty weighs heavily on the future. The IMF forecast, unveiled in Tokyo ahead of the IMF-World Bank 2012 Annual Meetings last week, sees only a gradual strengthening of activity from the relatively disappointing pace of …Read More
The European Central Bank’s New Bond-Buying Program: Implications for Italy
Lombardi, Domenico, (2012), ‘The European Central Bank’s New Bond-Buying Program: Implications for Italy’, www.brookings.edu, 11 September. Τoday’s meeting between Greek Prime Minister Antonis Samaras and European Central Bank President Mario Draghi is a further sign of the increasingly important role of the Eurotower in dealing with the crisis in Europe.
To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds
De Grauwe, Paul, (2012), ‘To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds’, blogs.lse.ac.uk, 31 July. Government bond markets in Europe remain volatile, with Spanish and Italian bond rates at near unsustainable levels. Paul De Grauwe argues that the only institution that can stabilize these markets by buying government bonds is the European Central Bank (ECB). The ECB must now overcome its risk averse nature …Read More
Thanks to the ECB
Wyplosz, Charles, (2012), ‘Thanks to the ECB’, www.voxeu.org, 30 July. Financial markets once again pushed Eurozone leaders to act. European Central Bank President Draghi recently promised to “do whatever it takes”. This column argues that Draghi made an implicit commitment to act as lender of last resort to Eurozone governments. This means optimism may be justified – if only because it suggests that the Eurozone has a great central banker …Read More
Is Europe on a Cross of Gold
Sinn, Hans Werner, (2012), “The European Banking Union?”, www.project-syndicate.org, 13 June. Increasingly, one hears predictions that the euro will go the way of the gold standard in the 1930’s. And, increasingly, the reasoning behind such forecasts seems persuasive. But does that mean that the euro doomsayers are right?
The European Banking Union?
Sinn, Hans Werner, (2012), ‘The European Banking Union?’, www.project-syndicate.org, 13 June. In blatant violation of the Maastricht Treaty, the European Commission has come forward with one bailout plan after another for Europe’s distressed economies. Now it wants to socialize not only government debt by introducing Eurobonds, but also banking debt by proclaiming a “banking union.”
Capturing the ECB
Stiglitz, Joseph, (2012), ‘Capturing the ECB’, www.project-syndicate.org, 6 February. Nothing illustrates better the political crosscurrents, special interests, and shortsighted economics now at play in Europe than the debate over the restructuring of Greece’s sovereign debt. Germany insists on a deep restructuring – at least a 50% “haircut” for bondholders – whereas the European Central Bank insists that any debt restructuring must be voluntary.