Discretion lets Croatia in but leaves Bulgaria out of the euro area in 2023

Zsolt Darvas Crucial decisions about whether a country can join the euro area depend on questionable discretionary decisions. On 17 June 2022, the euro area’s finance ministers endorsed Croatia’s euro membership, based on assessments by the European Commission and the European Central Bank. Both institutions concluded that Croatia fulfils the conditions for euro adoption. They also judged that another […]

Past and present inflation are more similar than you think

Marijn A. Bolhuis, Judd N. L. Cramer, Lawrence H. Summers Housing inflation in the US before 1983 was measured in a way that made the Consumer Price Index (CPI) mechanically responsive to Fed policy, leading to artificially high peaks and fast declines in CPI inflation. To better contextualise the current run-up in inflation to a 40-year high, […]