The conventional wisdom before the creation of the euro was that the monetary union would force its least productive members to undertake the structural reforms needed to modernise their economies. In the past, the peripheral European countries had used devaluations to recover from adverse business-cycle shocks, but without correcting the underlying imbalances of their economies.
Did the euro kill governance in the periphery?
Jesús Fernández-Villaverde, Luis Garicano, Tano Santos, 30 April 2013
Why do large movements in exchange rates have small effects on international prices?
Mary Amiti, Oleg Itskhoki, Jozef Konings, 19 February 2013
Exchange rate moves have surprisingly small effects on prices. This apparent ‘disconnect’ is one of the central puzzles in international macroeconomics. It is also a continual headache for policymakers who rely on exchange rates to accommodate the adjustment of global (current account) imbalances.
Eurozone crisis: It ain’t over yet
Paolo Manasse, 17 January 2013
Despite apparent calm on the financial markets, no illusions that the storm is ending soon should be entertained. Indeed, we may well be in the eye of the hurricane.
Crisis and public support for the euro
Felix Roth, Lars Jonung, Felicitas Nowak-Lehmann, 5 November 2012
The euro is a unique currency in at least two ways. It is the first time that a group of democratic countries have abolished their national currencies and replaced them with a single currency that is managed by a common central bank, the ECB. The euro is also unique in that data on public attitudes towards the euro have been collected for more than 20 years (Eurobarometer 2012).
Can Italy survive the financial storm?
Daniel Gros, 19 December 2011
Fiscal rules for the Eurosystem: From “free talk” to effective incentive schemes
Britta Kuhn, 24 September 2011
In a bid to save the euro, political leaders together with the European Central Bank have applied new fiscal instruments and have heavily intervened in financial markets since early 2010. To calm their critics, they have praised existing monitoring arrangements and proposed new fiscal schemes.
Fiscal crisis, contagion, and the future of euro
Marco Pagano, 15 May 2010
Fiscal crisis, contagion, breakdown of the euro... Let’s try to understand what is going on. In the past few days, the scenarios discussed in the media have been changing so rapidly and dramatically that for many it may be hard to grasp the reason behind them.
Is the euro a failure?
Gilles Saint-Paul, 5 May 2010
During the run-up to the monetary union, many economists were sceptical and warned that it would not work. Their argument was simple. Europe was not an optimal monetary union because it lacked both labour mobility and the fiscal mutual insurance schemes that exist in the US.
What is the status of the international roles of the dollar?
Linda Goldberg, 31 March 2010
By many measures, the dollar is the most prominent currency in the world. It plays a central role in international trade and finance as both a store of value and a medium of exchange.
Memory and the dollar
Rebecca Hellerstein, William Ryan, 6 February 2010
Since the Second World War, the dollar has been the currency used most commonly in financial, trade, and cash transactions worldwide. Whether that will remain the case is the subject of an intensifying debate in global financial circles.
- Distilling the macroeconomic news flowBeber, Brandt, Luisi
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013