Giuseppe Bertola, Anna Lo Prete, 28 February 2015

The large international imbalances accumulated in the Eurozone have proven difficult to unwind during the recent Crisis. This column argues that market reforms had a role in generating current account imbalances, and that patterns of relative labour market regulation could be equally important in the aftermath of the Crisis.

Andrei Markevich, Ekaterina Zhuravskaya, 28 February 2015

There is a debate among economists about the effects of serfdom on economic development. This column sheds light on this debate using novel dataset from 19th-century Russia. The findings indicate that serfdom was a crucial factor causing economic slowdown. The abolishment of serfdom was followed by a sharp increase in agricultural productivity, the living standards of peasants, and industrial development. 

Jan van Ours, 27 February 2015

The Great Recession has been characterised by an unprecedented decline in GDP, and unemployment rates remain above pre-Great Recession levels in many countries. This column argues that economic growth is a ‘one size fits all’ solution for the problem of unemployment, because the unemployment rates of different kinds of workers are strongly correlated within countries. That said, economic growth affects above all the position of young workers, and so benefits mostly those who need it the most.

Julio Escolano, Laura Jaramillo, Carlos Mulas-Granados, Gilbert Terrier, 27 February 2015

Fiscal consolidation is back at the top of the policy agenda. This column provides historical context by examining 91 episodes of fiscal consolidation in advanced and developing economies between 1945 and 2012. By focusing on cases in which the adjustment was necessary and desired in order to stabilise the debt-to-GDP ratio, the authors find larger average fiscal adjustments than previous studies. Most consolidation episodes resulted in stabilisation of the debt-to-GDP ratio, but at a new, higher level.

Alejandro Justiniano, Giorgio Primiceri, Andrea Tambalotti, 27 February 2015

There is no consensus among economists on the forces that drove the historical rise of US house prices and household debt that preceded the Global Crisis. In this column, the authors argue that the fundamental factor behind that boom was an increase in the supply of mortgage credit. This rise was brought about by the diffusion of securitisation and shadow banking, and by a surge in foreign capital inflows. The finding is based on a straightforward interpretation of four key macroeconomic developments between 2000 and 2006, provided by a simple general equilibrium model of housing and credit. 

Other Recent Columns: