What caused the great recession in the Eurozone? What could have avoided it?
Philippe Martin, Thomas Philippon. Economists disagree over the origin of the Eurozone Crisis. This column uses a quantitative framework to sort through the various channels and policy impacts. It argues that fiscal and macroprudential policies are complements, not substitutes. Prudent fiscal policy is helpful but cannot by itself undo private leverage booms. Both prudent fiscal […]
Structural Reforms Will Not Mitigate The Risk Of Deflation In Europe
Theodoropoulou, Sotiria. In a speech delivered at the Central Bank of Latvia on October 17th, Benoit Coeuré, member of the executive board of the ECB and apparently one of the currently few close confidants of Mario Draghi, argued that speeding up the pace of structural reforms in the Eurozone could be key to averting the […]