Speculative Attacks within or outside a Monetary Union: Default versus Inflation (what to do today)
Gros, Daniel. In this analytical policy brief, CEPS Director Daniel Gros explores whether there is a fundamental difference between a formal sovereign default with a haircut and debt monetisation, which reduces the purchasing power for investors by the same amount. He argues that there is indeed a difference because a formal sovereign default invariably leads […]
Who cares about the survival of the eurozone?
De Grauwe, Paul. De Grauwe expresses astonishment in this new Commentary at the continued insistence in both Brussels and Frankfurt on budgetary austerity as the necessary and sufficient response to stop the government debt crisis in the eurozone. In his view, the austerity programmes should be softened and spread over a longer period of time, […]
How does monetary policy respond to financial stress?
Baxa, Jaromír, Horváth, Roman & Vašíček, Bořek. Central bankers focused too much on inflation targets and too little on financial stability – so the criticism goes. This column examines the evidence, with a look at the world’s five major central banks over the last 30 years. Πηγή: Voxeu πλήρες κείμενο