Fiscal rules: Timing is everything
Marzinottο, Βenedicta, Sapir, André. The strengthening of the European Union’s fiscal rules with the approval of the so-called ‘six-pack’, and the parallel worsening of economic conditions in Europe, re-opened the debate about the relationship between fiscal discipline and growth. Influential voices have argued against the EU’s perceived obsession with fiscal discipline, which risks being self-defeating […]
Νίκος Κουτσιαράς: Η σημασία των πρόσφατων αποφάσεων της Ευρωπαϊκής Κεντρικής Τράπεζας (για την ευρωζώνη και την Ελλάδα)
Την Πέμπτη, 7 Σεπτεμβρίου 2012, το διοικητικό συμβούλιο της Ευρωπαϊκής Κεντρικής Τράπεζας (ΕΚΤ) αποφάσισε την διατήρηση του βασικού επιτοκίου πολιτικής στο 0,75% και, πράγμα πολύ σημαντικότερο –τουλάχιστον κατά πως έγινε κοινώς αντιληπτό- καθόρισε τους όρους και τις προϋποθέσεις εφαρμογής του νέου προγράμματός της για την αγορά κρατικών ομολόγων στην δευτερογενή αγορά – του καλούμενου προγράμματος […]
Confronting the jobs crisis under tight fiscal constraints
Clements, Benedict, Ruud de Mooij & Schwartz, Gerd. Many advanced country governments face the dual challenge of promoting job growth while pushing ahead with spending cuts. This column discusses how well-designed fiscal policy reforms can help boost employment without busting the government budget. Πηγή: Voxeu πλήρες κείμενο
Why early sovereign default could save the euro
Hau, Harald, Hege, Ulrich. The recent announcement by the ECB that it will start to buy Spanish and Italian sovereign debt has been warmly welcomed throughout Europe. But this column argues that by doing so the ECB is digging the euro’s grave. It says the solution is default, either through inflation or debt restructuring – […]
Intra-euro rebalancing is inevitable but insufficient
Darvas, Zsolt. Greece, Portugal and Spain face a serious risk of external solvency due to their close to minus 100 percent of GDP net negative international investment positions, which are largely composed of debt. The perceived inability of these countries to rebalance their external positions is a major root of the euro crisis. Πηγή: Bruegel […]
The economic crisis: How to stimulate economies without increasing public debt
Wood, Richard. Quantitative easing and austerity have done little to stop the EZ’s periphery economies sliding towards depression. Policy Insight No. 62 argues that new money creation can finance deficits without increasing public debt. Πηγή: CEPR πλήρες κείμενο
Europe should choose whether it wants Greece in or out
Pisani-Ferry, Jean. For the third time in three years the Europeans’ stance on Greece is economically inconsistent. The first time was in 2009-2010 after then prime minister George Papandreou indicated that he would need to file for assistance from the International Monetary Fund. The European response was to reject the principle of IMF intervention while […]
Making sense of Eurobond proposals
Claessens, Stijn, Mody, Ashoka & Vallee, Shahin. The Eurozone debate is awash with proposals for mutualising national debt. This column summarises and evaluates the main proposals – suggesting how they might be combined in a five-year path to a fiscal union. It stresses that short-term stability objectives will only work if they help to advance the agenda […]
Why a Breakup of the Euro Area Must Be Avoided: Lessons from Previous Breakups
Aslund, Anders. One of the big questions of our time is whether the Economic and Monetary Union (EMU) will survive. Too often, analysts discuss a possible departure of one or several countries from the euro area as little more than a devaluation, but Åslund argues that any country’s exit from the euro area would be […]
Europe’s Summer Reading List
Eichengreen, Barry. In August, Europeans head for the beach. The continent shuts down on the assumption that nothing of consequence will happen until everyone returns, suitably tanned, in September. Never mind the subprime crisis of August 2007 or, closer to home, the European monetary crisis of August 1992: the August holiday is a venerable tradition. […]