What can Europe learn from Sweden? Four lessons for fiscal discipline
Calmfors, Lars. Several Eurozone countries are currently struggling with acute fiscal crises. This column argues that Sweden provides an example that fiscal transparency and a high-quality economic policy debate may be more important for budget discipline than formally binding rules and automatic correction mechanisms as being envisaged in the European fiscal compact. Πηγή: Voxeu πλήρες […]
We blame you!
Ιωαννίδης, Αλκίνοος. We blame you, you know, μου είπε ένας Άγγλος στο Λονδίνο. Εννοούσε πως οι Έλληνες κάνουμε ζημιά στις οικονομίες των άλλων χωρών της Ευρώπης. Με την κυκλοφορία της συλλογής “Local Stranger” στο εξωτερικό, θα πέφτω συχνά πάνω σε τέτοιου είδους ατάκες ξένων δημοσιογράφων. Πηγή: alkinoos.gr πλήρες κείμενο
Sustainability of Italy’s sovereign debt
Cline, William. The clouds hanging over the Eurozone seem to have cleared – for now. But it wasn’t long ago that people were looking at Italy and calling for debt restructuring. This column argues that such a move would have triggered bank runs, financial instability, and perhaps the break up of the euro. It says […]
What Is It About Greece?
Stevis, Matina. The Greek debt restructuring, now in its final stretch, is “being as closely watched as a U.S. presidential election,” a market participant quips. But, why, one might ask, are people prepared to put themselves through the process of memorizing acronyms, learning about complicated legal maneuvers and following what has been an exhausting process, if […]
Finally, Spain
Krugman, Paul. I’ve always viewed Spain, not Greece, as the quintessential euro crisis country. With Rajoy’s government balking — rightly — at further austerity, the focus is now where it arguably should have been all along. Πηγή: The New York Times πλήρες κείμενο
In the slipstream of the Greek debt exchange
Gulati, Mitu, Zettelmeyer, Jeromin. One of the most interesting questions arising from the ongoing Greek debt restructuring is what it implies about the feasibility of voluntary debt restructurings. Indeed, why would anyone voluntarily take a debt-exchange offer that promises a large reduction in repayments? This column argues creditors might feel safer with new debt instruments […]
Greece’s Soft Budgets in Hard Times
Gros Daniel. The first de facto default of a country classified as “developed” has now taken place, with private international creditors “voluntarily” accepting a “haircut” of more than 50% on their claims on the Greek government. As a result, Greece now owes very little to private foreign creditors. Πηγή: Project Syndicate πλήρες κείμενο
Challenges for the euro area and implications for Latvia
Wolff, Guntram. This Policy Contribution reviews the major challenges faced by the euro area, and discusses recent initiatives and the way forward. Some implications are drawn out for Latvia’s euro accession, which is likely to be beneficial on balance. The euro area faces three major challenges: (1) high private and public debt in some of […]
A Devaluation Option for Southern Europe
Gopinath, Gita, Farhi, Emmanouel, & Itskhoki, Oleg. This year is likely to mark a make-or-break ordeal for the euro. The eurozone’s survival demands a credible solution to its long-running sovereign-debt crisis, which in turn requires addressing the two macroeconomic imbalances – external and fiscal – which are at the heart of that crisis. Πηγή: Project Syndicate πλήρες […]
‘Hubrisk’ (hubris+risk) and the Greek crisis
Danielsson, Jon. The Eurozone’s problems are political as well as economic. The European leaders establishing the euro were, according to this column, guilty of putting political desire above economic reality. Their successors now trying to resolve the sovereign debt crisis are repeating that mistake, with potentially devastating consequences. Πηγή:Voxeu πλήρες κείμενο