Austerity for all?
Jens Weidmann, president of the German Bundesbank, warns of currency wars, according to a FT article: ‘Whether intended or not, one consequence could be the increased politicisation of the exchange rate,” he said, according to a text of his speech provided by the Bundesbank. “Until now the international monetary system got through the crisis without […]
Investigating the effect of exchange-rate changes in Japan, China, east Asia, and Europe
Thorbecke, Willem. Policymakers everywhere are concerned about currency wars. Are quantitative easing and managed exchange rates bad for the global economy? This column looks at the hard empirical evidence, arguing that, in fact, Japan is behaving rather responsibly and that other strong economies have themselves benefited from undervalued currencies. That said, it is true that […]
Helicopter money
Grenville, Stephen. What would the overt monetary financing of fiscal deficits involve? This column explains the differences between “printing money”, quantitative easing, and overt monetary finance. Lord Turner’s proposed “helicopter drop” raises issues for banks’ balance sheets and central bank independence. Πηγή: Voxeu πλήρες κείμενο
Πολλαπλασιαστές: Για να ξέρουμε τι λέμε!
Βαρουφάκης, Γιάνης. Αυτό τον καιρό η έννοια του δημοσιονομικού πολλαπλασιαστή έχει αποκτήσει σημαντική πολιτική σημασία, καθώς δραπέτευσε από τα εγχειρίδια των μακροοικονομικών και κυριαρχεί στον δημόσιο διάλογο τόσο στην Ελλάδα όσο και αλλού. Καλό είναι λοιπόν να ξέρουμε τι λέμε όταν αναφερόμαστε σε αυτόν. Πηγή: www.protagon.gr πλήρες κείμενο
Why do large movements in exchange rates have small effects on international prices?
Amiti, Mary, Itskhoki, Oleg, Konings, Josef. Why is it that large movements in exchange rates have small effects on international prices? What does this mean for a crisis-stricken Eurozone? Using firm-level data, this column presents new research that investigates this exchange rate ‘disconnect’. Evidence suggests that the prices of the largest firms – with their disproportionately large […]
Root causes of currency wars
Evenett, Simon. Discussion of currency wars has broken out again in the run-up to this week’s G20 finance ministers’ meeting in Moscow. This column points to the underlying policy choices responsible for the recurring currency disputes and the feeble ex-post rationalisations for them. Πηγή: Voxeu πλήρες κείμενο
We may have avoided the cliffs, but we still face high mountains
Blanchard, Olivier. The new year has provided cheer for macroeconomic optimists. This column by Olivier Blanchard, one of the world’s leading economists, argues that important progress has been made in putting the crisis behind us, but that recovery continues to be hampered by the need for fiscal consolidation and a weak financial system. Πηγή: Voxeu […]
Misplaced concerns about central bank independence
Annunziata, Marco. Economists and policymakers are increasingly concerned that central bank-independence is being threatened. This column argues that central banks are not losing their independence, but that their room for manoeuvre is being eroded by a lack of structural reforms and fiscal adjustment. The financial crisis has caused mission creep, pushing central banks well beyond […]
Monetary policy and firing costs
Ester, Faia, Lechthaler, Wolfgang & Merkl, Christian. Eurozone labour markets are under stress. This column explores the connections between labour-market reform and macroeconomic policy, arguing that with its large differences in firing costs, normal Eurozone monetary policy is inappropriate for several Eurozone countries. If the efficacy of the ECB’s policy is impaired because there is no harmonisation […]
The Tyranny of Political Economy
Rodrik, Dani. There was a time when we economists steered clear of politics. We viewed our job as describing how market economies work, when they fail, and how well-designed policies can enhance efficiency. We analyzed trade-offs between competing objectives (say, equity versus efficiency), and prescribed policies to meet desired economic outcomes, including redistribution. It was […]