Eurozone: Looking for growth
Boone, Laurence, Renucci,Céline, & Segura-Cayuela, Ruben. What happens after the crisis ends? This column estimates the long-term effects of the current cyclical downturn on Eurozone economies. In the absence of any real impetus for bold reform, estimates show that the damage will indeed be long lasting, permanently impairing growth for an ageing population that requires higher growth […]
Where has all the (base) money gone?
Papadia, Francesco, Giuseppe Daluiso. The short answer is: into the liquidity trap[1]. The longer answer starts from two quotations from Milton Friedman, which give the essence (but not the subtleties) of monetary policy as it stood before the Neo-Wicksellian school concluded that prices, in the guise of interest rate, not quantities, as monetary aggregates, are […]