The UK is still reeling from the great financial crash. Real GDP remains below its 2007 level, the nation’s 8.4% unemployment rate is at a 16-year high, and youth unemployment is over 20% (BBC 2012). Over three million UK citizens can’t find work or have given up looking.
The Vickers Commission’s failure
Laurence J. Kotlikoff, 26 October 2012
Banks and cross-border capital flows: Policy challenges and regulatory responses
Markus K Brunnermeier, José De Gregorio, Philip Lane, Hélène Rey, Hyun Song Shin, 7 October 2012
The textbook case for financial integration is well known. It allows capital to flow from capital-rich to capital-poor economies, where returns should be higher. These flows complement limited domestic saving in capital-poor countries and reduce their cost of capital, boosting investment and growth.
What is the contribution of the financial sector?
Andrew G Haldane, Vasileios Madouros, 22 November 2011
There is no doubting the financial sector has a significant impact on the real economy. Financial crisis experience makes this only too clear.1 Financial recessions are both deeper and longer-lasting than normal recessions. At this stage of a normal recession, output would be about 5% above its pre-crisis level. Today, in the UK, it remains about 3.5% below.
Too much finance?
Jean-Louis Arcand, Enrico Berkes, Ugo Panizza, 7 April 2011
The idea that a well-working financial system plays an essential role in promoting economic development dates back to Bagehot (1873) and Schumpeter (1911). Empirical evidence on the relationship between finance and growth is more recent.
Time for unorthodox monetary policy
John Muellbauer, 27 November 2008
The world economy is trapped in a dangerous global downward spiral of falling asset prices, shrinking credit, and rising bankruptcies, foreclosures and unemployment – all of which feed into more of the same – and drag commodity and now goods prices down with them.1 We were among the first to give a research-based warning of the coming price deflation i
Involving European citizens in the benefits of the rescue plan: The political paradoxes of bank socialism
Tito Boeri, 15 October 2008
Leaders of the Eurozone finally agreed on a plan. It is a very ambitious rescue plan – as it should be – to stop the self-fulfilling prophecies that brought us to the brink of another Great Depression. But it should now be made acceptable to European citizens.
- Secular stagnation: Facts, causes, and cures – a new Vox eBookTeulings, Baldwin
- Can large primary surpluses solve Europe’s debt problem?Eichengreen, Panizza
- The unrecognised benefits of grade inflationBoleslavsky, Cotton
- The US manufacturing base is surprisingly strongMoran, Oldenski
- Risk attitudes are context-specificLoomes, Pogrebna
- 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
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman