Europe's nations and regions

Martin Halla, Alexander Wagner, Josef Zweimüller, 29 November 2015

Europe is experiencing an unprecedented inflow of immigrants. Casual observation suggests that far-right parties could benefit from voters’ worries about this inflow. This update to a column from September 2012 provides empirical evidence showing that the geographic proximity of immigrants is one important causal driver behind support for the far right. The link with voting outcomes depends on the type of immigration, however, not just on the total number of immigrants.

Kevin Daly, Tim Munday, 28 November 2015

The fallout from the Global Crisis and its aftermath has been deeply damaging for European output. This column uses a growth accounting framework to explore the pre-Crisis and post-Crisis growth dynamics of several European countries. The weakness of post-Crisis real GDP in the Eurozone manifested itself in a decline in employment and average hours worked. However, decomposing growth for the Eurozone as a whole conceals significant differences across European countries, in both real GDP growth and its factor inputs.

Thorvaldur Gylfason, 26 November 2015

Seven years after its crisis, Iceland has staged an economic recovery. This column suggests that despite its overall success, the current economic situation in Iceland is not devoid of problems. Insufficient competition in certain areas keeps real wages lower in Iceland compared to other Nordic countries. The current government in power seems not to have learned enough from the crash of 2008. Finally, Iceland still needs to bring to justice more of those responsible for breaking the law while breaking the banks.

Margarita Katsimi, Gylfi Zoega, 19 November 2015

Iceland and Greece were both seriously affected by the Global Crisis, yet their experiences with the implemented IMF programmes have been quite different. In Iceland the programme has been a success, whereas the one in Greece has been a failure. This column explains why this happened. First, Iceland’s external debt was de jure private, while Greece’s external debt was sovereign debt. Second, Iceland has its own currency, making it easy to create a current account surplus through a lower exchange rate. Finally, the government of Iceland took full ownership of the IMF programme, which was not the case in Greece.

The Editors, 17 November 2015

The IMF, together with CEPR and the Central Bank of Ireland, put on a conference that drew lessons from Ireland’s bailout package titled “Ireland: Lessons from its Recovery from the Bank-Sovereign Loop”. This column summarises the contributions by Eichengreen, Fatás and Schoenmaker, as well as panel comments by Christine Lagarde, Benoît Coeuré, Michael Noonan, and Valdis Dombrovskis. 

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