EU institutions

Martin R. Götz, Rainer Haselmann, Jan Pieter Krahnen, Sascha Steffen, 25 September 2015

Discussions continue in some circles as to whether the ECB’s emergency liquidity assistance for Greek banks is legitimate. This column assesses the underlying economics of the emergency liquidity assistance programme and the complex interrelationship between the EU, the ECB and the Greek banks. Economists must focus on the political economy of a monetary union with incomplete fiscal union if they are to understand what’s going on with emergency liquidity.

Guido Tabellini, 07 September 2015

What are the main lessons to be drawn from the European financial crisis? This column argues that the Eurozone really is at a major cross-roads. Without a common fiscal policy, and without adequate institutions for aggregate demand management, European leaders have to constantly alter the rules. Currency risk will be the major concern of financial markets, much more than in the past, due to how Europe has dealt with the Greek crisis.

Richard Baldwin, Francesco Giavazzi, 07 September 2015

Economists infamously disagree about more or less everything. Luckily, this doesn't hold for CEPR Fellows. This chapter introduces the eBook – delving into the fundamentals that we agree on, and the nuances that we don’t.

Elias Papaioannou, 07 September 2015

The focus of European policymaking in the 1990s was on meeting a set of nominal criteria. This chapter argues that instead the focus should be on institutional reform and convergence. The main issues that need to be addressed are related to state capacity (tax collection), property rights protection, investor rights, red tape, and administrative-bureaucratic quality. If Europe is to proceed with an even closer union, it should set up institutional rather than nominal targets.

Charles Wyplosz, 07 September 2015

What have we learned from the Eurozone crisis? This column argues that, very much unfortunately, we haven’t learned that much. In desperate need of a way out of the current impasse, economists and policymakers are imagining a menu of solutions. A grand panacea seems implausible, at present. So the way to proceed should follow the time-honoured European method – ‘functionalism’. The EU and the ECB must focus on modest tasks, dealing with them one by one, if we are to find our way out of the current mess.

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