Can the European Central Bank control interest rates?
Daluiso, Giuseppe, Papadia, Francesco. The short answer is a hesitant yes, bordering with a timid no. The longer answer starts by noting that the mechanism transmitting the monetary policy impulse from the European Central Bank to the economy is, in essence, a chain with three links: first, the official rate(s) of the ECB; second, the rate […]
Unemployment is the scourge, not youth unemployment per se: The misguided policy preoccupation with youth
Barslund,Mikkel Gros, Daniel. This Policy Brief argues that too much effort and political capital is being spent by the Commission and member states on being seen to be doing something quickly about youth unemployment when, in fact, the structural measures proposed will only have long-term effects. Expectations of immediate relief are running well above what […]
Much pain for small gain: difficulty of cost adjustment in the euro area
Vihriälä, Erkki, Wolff, Guntram. IMF’s latest World Economic Outlook discussed reasons for relatively stable inflation following the Great Recession. It noted that large output gaps and high unemployment have resulted in surprisingly little disinflation in advanced countries. This was attributed to more firmly anchored long-term inflation expectations as well as the reluctance of workers to accept […]
The Great Reckoning: Why the European ideal is under threat
Mazower, Mark. The certainties that sustained notions of European unity and social solidarity are collapsing. The financial structures that formed the foundations of old Europe have warped and are destroying it. So, where next? Πηγή: www.newstatesman.com πλήρες κείμενο
Lessons of a Greek Tragedy
Eichengreen, Barry. A visit to Greece leaves many vivid impressions. There are, of course, the country’s rich history, abundance of archeological sites, azure skies, and crystalline seas. But there is also the intense pressure under which Greek society is now functioning – and the extraordinary courage with which ordinary citizens are coping with economic disaster. […]
Latvia in the Eurozone: A Bet with No Upside
Mody, Ashoka. The euro does not help Latvia, but could hurt it. The Eurozone is not helped by Latvia, but Latvian entry could create new problems. The best scenario is that no one does worse than the status quo after Latvia joins the Eurozone. So why the rush for Latvia to become the 18th member […]
Europe’s Way Out
Rodrik, Dani. It seems that austerity is out of fashion in the eurozone – at least for the moment. The European Commission has given Spain, France, and the Netherlands more time to comply with the European Union’s 3%-of-GDP deficit ceiling. Even German government officials now concede that something more than fiscal belt-tightening is needed to […]
Social protection budgets in the crisis in the EU
Bontout, Olivier, Lokajickova, Terezie. The first working paper in the 2013 series reviews social protection expenditure developments in the crisis, focusing on expenditure trends in volumes following the peak of the crisis (2009), on changes in the distribution of incomes and, notably, on the distributional impact of austerity packages. Πηγή: European Commission’s DG for Employment, Social […]
Καινά δαιμόνια στον ΟΟΣΑ
Βαρουφάκης, Γιάνης. Την περασμένη εβδομάδα συμμετείχα στις εργασίες του ΟΟΣΑ στο Παρίσι, στο πλαίσιο του ετήσιου Forum του διεθνούς οργανισμού, προσκεκλημένος του Γ.Γ. του ΟΟΣΑ, του κ. Άνχελ Γκούρια. Πριν τρεις μήνες είχα ξαναβρεθεί στο Παρίσι, και πάλι μετά από πρόσκληση του κ. Γκούρια, για να συζητήσουμε τις διεθνείς οικονομικές εξελίξεις. Απ΄ ό,τι μου είπε […]
Νίκος Κουτσιαράς: Η δημοσιονομική ακροβασία –ενοποίηση- της ευρωζώνης
Η νηνεμία στις αγορές των κυβερνητικών ομολόγων της ευρωζώνης οφείλεται, κυρίως, στην (για την ώρα αδοκίμαστη) δέσμευση της Ευρωπαϊκής Κεντρικής Τράπεζας ότι θα αναλάβει ρόλο οιονεί δανειστή ύστατης καταφυγής των κυβερνήσεων και όχι στην δημοσιονομική λιτότητα και τις μεταρρυθμίσεις του καθεστώτος δημοσιονομικής και οικονομικής διακυβέρνησης. Τα σχέδια μεσο-μακροπρόθεσμης θεσμικής εμβάθυνσης της ευρωζώνης και, ειδικότερα, οι […]