How Costly Are Debt Crises?
Furceri, Davide, Zdzienicka, Aleksandra. The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The […]
Workers of the Western world
Freeland, Crystia. Branko Milanovic has some good news for the squeezed Western middle class — and also some bad news. Good news first: the past 150 years have been an astonishing economic victory for the workers of the Western world. The bad news is that workers in the developing world have been left out, and […]
The Draghi Deal
Mankiw, Greg. If I understand the news coming out of Europe correctly, the new head of the European Central Bank is offering a simple deal: If fiscal policy becomes hawkish, monetary policy will be dovish. In other words, as government spending is cut to put European governments on a sounder financial footing, monetary policy will do its best to ensure that any adverse […]
Do Eurozone leaders finally ‘get it’? Not quite yet
Wyplosz, Charles. This week’s announcements by German Chancellor Angela Merkel and ECB President Mario Draghi that the Eurozone is taking steps towards a closer fiscal union seem to be calming markets and restoring confidence in the decision-making of Eurozone leaders. This column argues, however, that the devil is still in the detail. Πηγή: Voxeu πλήρες […]