Monetary policy and fiscal discipline: How the ECB planted the seeds of the euro area crisis

Athanasios Orphanides Since the beginning of the euro area crisis, euro area governments have experienced greater fiscal stress than governments of advanced economies outside the euro area with comparable or weaker fiscal fundamentals. This column, taken from a recent VoxEU   […]

Increasingly fit again: The euro area economy is shedding the crisis legacies

Marco Buti, Björn Döhring, José Leandro. The outlook for the euro area economy depends to a large extent on whether the impact of the crisis will turn out to be permanent or transitory. This column attempts to chart out the   […]

Monetary policy with negative nominal interest rates

Gauti Eggertsson, Ragnar Juelsrud, Ella Getz Wold. Economists disagree on the macroeconomic role of negative interest rates. This column describes how, due to an apparent zero lower bound on deposit rates, negative policy rates have so far had very limited   […]

The macroeconomic performance paradox: A new model

Wendy Carlin, David Soskice. Following the post-financial crisis recession, the UK and other high-income countries have experienced slow growth and stagnant productivity, along with both low inflation and, more recently, low unemployment. This column introduces an intuitive macroeconomic model that   […]

Microeconomic shocks drive aggregate fluctuations in Europe

Christian Ebeke, Kodjovi Eklou. The economics profession has generally explained large movements in macroeconomic aggregates such as GDP or employment by shocks to other aggregates. This is in part due to the difficulty of translating micro or localised shocks into   […]

Low inflation for longer

Thomas Hasenzagl, Filippo Pellegrino, Lucrezia Reichlin, Giovanni Ricco. The ECB’s Survey of Professional Forecasters supports the ECB’s view that inflation in the Eurozone will pick up and will be back within the central bank’s target range in 2019.  This column   […]

Income Convergence in the EU: A tale of two speeds

Cinzia Alcidi, Jorge Núñez Ferrer, Mattia Di Salvo, Roberto Musmeci and Marta Pilati. Economic convergence refers to the process in which relatively poorer countries (or regions) grow faster than relatively richer ones, thereby allowing the former to catch up with   […]

Ordoliberalism: A German oddity?

Thorsten Beck, Hans‐Helmut Kotz The Eurozone crisis has opened fault lines between German economists and policymakers and those in a number of Eurozone (in particular periphery) countries.This column introduces a new eBook explaining the historical development of the ordoliberal school   […]

Reforming the Eurozone: Structuring versus restructuring sovereign debts

Guido Tabellini. In the debate on European reforms, a sovereign debt restructuring mechanism for the Eurozone is often proposed. This column argues that such a mechanism is not required. Instead, Eurozone member states should issue GDP-linked bonds, which would enact   […]

A slightly tighter ECB

Francesco Papadia. The ECB’s recent decision on QE was somewhat on the dovish side. Francesco Papadia gives his view on why it is time to start a discussion about reducing the degree of ease of monetary policy. Πηγή: Bruegel πλήρες κείμενο   […]