http://www.VoxEU.org Recent Michael Burda articles on VoxEU.org en http://www.VoxEU.org/index.php?q=node/8222 Michael Burda, Hans Peter Grüner, Frank Heinemann, Martin Hellwig, Mathias Hoffmann, Gerhard Illing, Hans?Helmut Kotz, Jan Pieter Krahnen, Tom Krebs, Gernot Müller, Andreas Schabert, Isabel Schnabel, Moritz Schularick, Dennis J Snower, Uwe Sunde, Beatrice Weder di Mauro, 9 July 2012

The EU Summit decision on banking union is being questioned by some economists in Germany. This column argues that a banking union is a critical step in ending the EZ crisis and building a more stable EZ financial architecture. It is a translation by Michael Burda of the German-language manifesto drafted by the First Signatories listed below and signed by over 100 economists.

Full Article: Manifesto for a banking union by economists in Germany, Austria and Switzerland]]> Mon, 09 Jul 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8222 http://www.VoxEU.org/index.php?q=node/8005 Michael Burda, 17 May 2012

The EZ crisis reveals critical flaws in the Eurozone’s design. This column argues that failing to abolish national central banks left the door open for national interests to interfere with the natural workings of the financial system and Hume’s adjustment mechanism. This flaw – and the omission of a European Banking Authority with real teeth – will come back to haunt Europe in the months and years to come.

Full Article: Hume on hold? Consequences of not abolishing Eurozone national central banks]]> Thu, 17 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8005 http://www.VoxEU.org/index.php?q=node/7200 Michael Burda, Jennifer Hunt, 2 November 2011

Jobs and the lack of them are top of the agenda for policymakers and increasingly groups of protestors gathered in the financial districts of New York, London, and elsewhere. Unemployment in these countries is in danger of reaching 10%. In Germany, however, unemployment is below 7%. Some hail it as a miracle. This column finds a scientific – and far less inspiring – explanation.

Full Article: Should we believe the German labour-market miracle?]]> Wed, 02 Nov 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7200 http://www.VoxEU.org/index.php?q=node/5165 Michael Burda, Stefan Gerlach, 17 June 2010

While the Stability and Growth Pact had good intentions, it failed because nothing happened when governments broke the rules. This essay proposes an enhanced Pact with increased fiscal transparency, an independent committee of fiscal experts, and a 1% tax on new debt above the 60% debt-to-GDP ratio. This would redistribute the costs of running Europe from the countries that have their house in order to those that don’t.

Full Article: A credible Stability and Growth Pact: Raising the bar for budgetary transparency ]]> Thu, 17 Jun 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5165 http://www.VoxEU.org/index.php?q=node/5029 Michael Burda, Stefan Gerlach, 11 May 2010

This weekend’s plan has been received positively by the markets, but it is too early to call it a success. Future monetary historians may judge it either a brilliant move or the first step on a slippery slope to ruin. The EU needs to set up an independent institution to vet fiscal plans of Eurozone governments and apply a sliding scale of sanctions. If the euro is to survive the current decade, Greece cannot happen again.

Full Article: If the euro is to survive the decade, Greece cannot happen again]]> Tue, 11 May 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5029 http://www.VoxEU.org/index.php?q=node/4747 Michael Burda, 13 March 2010

Greece’s recent deficit-cutting budget was met with planned strikes and protests in the streets. This column argues that the painful fiscal adjustments could turn out to be a good thing for Europe’s political integration, but the region has to take the next step and set up a European Monetary Fund.

Full Article: Greece: It's not all tragedy]]> Sat, 13 Mar 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4747 http://www.VoxEU.org/index.php?q=node/4180 Michael Burda, 9 November 2009

East Germany has done better than other ex-communist states, but it has not caught up to West Germany. There were two key mistakes – using politically expedient but highly distortionary payroll taxes to fund social buy-outs and trying to resist agglomeration effects by spreading money thinly across every town and village. This column argues that closing the gap will be tough, since convergence will come only when East Germany has the same level of social, institutional, business, and marketing infrastructure.

Full Article: Half-empty or half-full? East Germany two decades later]]> Mon, 09 Nov 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4180 http://www.VoxEU.org/index.php?q=node/2385 Michael Burda, 9 October 2008

European fundamentals are in good shape, but its banks are suffering from contagion. To avoid further real damage, EU leaders should guarantee intra-bank lending and recapitalise the banks.

Full Article: What Europe should do in the shadow of the financial meltdown]]> Thu, 09 Oct 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/2385 http://www.VoxEU.org/index.php?q=node/1647 Michael Burda, 12 September 2008

Supply side reforms have had a positive impact on the labour market in Germany, raising job creation and reducing the unemployment rate. At the European Economic Association meetings in Milan in August 2008, Michael Burda of Humboldt University in Berlin discussed these achievements and future prospects for the German economy with Romesh Vaitilingam.

Full Article: The labour market in Germany ]]> Fri, 12 Sep 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/1647 http://www.VoxEU.org/index.php?q=node/892 Michael Burda, 28 January 2008

German discussion of economic policy is appallingly demagogic. Neglect of economic reasoning has resulted in the threat of a maximum wage and passage of a minimum wage that will cost thousands of jobs.

Full Article: Germany’s disastrous economic demagoguery]]> Mon, 28 Jan 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/892 http://www.VoxEU.org/index.php?q=node/669 Michael Burda, 23 October 2007

Germany’s equilibrium rate of unemployment has not fallen as much over the past two decades as in the Netherlands, Denmark, Ireland, and Britain. Unlike those successful reformers, Germany has not yet finished its supply-side homework. If it backslides now, it and the rest of Europe will pay the price when the next downturn comes.

Full Article: Germany’s supply-side backsliding]]> Tue, 23 Oct 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/669 http://www.VoxEU.org/index.php?q=node/404 Michael Burda, 23 July 2007

Germany has finally gotten aboard the train of labour market, supply-side oriented reforms initiated by Europe’s success stories -- Netherlands, Denmark, Ireland, and the UK. Italy and France would do well to follow suit

Full Article: German recovery: it’s the supply side]]> Mon, 23 Jul 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/404 http://www.VoxEU.org/index.php?q=node/185 Michael Burda, 17 October 2006

Germany’s government led by Angela Merkel is about to celebrate one year’s existence. The grand coalition is failing because the politicians still don’t agree on the correct solution to Germany’s problems. But this is not all their fault. Germany is a functioning democracy and deserves the leadership and policies it gets.

Full Article: Merkel’s grand coalition birthday.]]> Tue, 17 Oct 2006 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/185 http://www.VoxEU.org/index.php?q=node/184 Michael Burda, 1 March 2006

Written February 2006: the first 100 days of Angela Merkel has been something of a sensation. Yet, with her unheard-of approval rating of 80%, the party hasn’t even started. And it’s a race against time: grand coalitions tend to self-destruct as soon as the low-hanging fruit is gone.

Full Article: Merkel after 100 days]]> Wed, 01 Mar 2006 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/184