The unpleasant legacy of the crisis: public debt and low trend growth in the Eurozone

Nicholas Crafts interviewed by Viv Davies, 21 Jan 2014

Nicholas Crafts talks to Viv Davies about his recent work on the threatening issue of public debt in the Eurozone. Crafts maintains that the implicit fault line in the EZ is evident; several EZ economies face a long period of fiscal consolidation and low growth and that a different sort of central bank might be preferable. They also discuss the challenges and constraints of banking, fiscal and federal union. The interview was recorded in London on 17 January 2014.

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See Also

Crafts, N (2013b), “Saving the Euro: a Pyrrhic Victory?”, CAGE-Chatham House Policy Briefing Paper No. 11.

Transcript

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Topics: Economic history, Macroeconomic policy
Tags: debt monetisation, ECB, eurozone, financial repression, fiscal consolidation, gold standard, public debt

The Eurozone: If only it were the 1930s

Nicholas Crafts, 13 December 2013

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The 1930s deservedly have a bad name. It is hard to imagine that a decade that included the Great Depression and a major de-globalisation of the world economy, and culminated in WWII could be other than notorious. And yet, compared with struggling Eurozone economies today, the economic situation in Europe in the later 1930s was in many ways more promising.

Topics: Economic history, Macroeconomic policy
Tags: debt monetisation, ECB, eurozone, financial repression, fiscal consolidation, gold standard, public debt

The economic crisis: How to stimulate economies without increasing public debt

Richard Wood, 31 August 2012

Download CEPR Policy Insight No. 32 here.

URL: http://www.cepr.org/pubs/PolicyInsights/CEPR_Policy_Insight_062.asp
Topics: Macroeconomic policy
Tags: global crisis, public debt, quantiative easing

US debt issuance since 1951 and the fallacy of issuing floating rate notes

Peter Stella, Manmohan Singh, 14 May 2012

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Most of today’s debate turns on the amount of US debt issuance, but the nature of the debt is also under discussion. In the current environment of macroeconomic uncertainty, the demand for safe assets has bloomed and the definition of “safe” is evolving. Part of this is the debate on whether floating rate notes should be issued by the US Treasury.

Topics: Macroeconomic policy
Tags: Fiscal crisis, floating rate notes, public debt, US

A case for balanced-budget stimulus

Pontus Rendahl, 26 April 2012

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With debt-levels hitting record highs and growth running low on steam, European policymakers have found themselves facing a grim dilemma: should government spending be increased at the risk of reawakening the wrath of the sovereign bond markets? Or should austerity instead assume the political mantra with the hope of merely muddling through?

Topics: Macroeconomic policy
Tags: fiscal stimulus, government spending, multiplier effect, public debt

Lessons from a century of large public debt reductions and build-ups

S. M. Ali Abbas, Nazim Belhocine, Asmaa El-Ganainy, Mark Horton, 18 December 2011

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Empirical work on debt cycles and debt sustainability has been constrained by lack of public debt data on a large number of countries over a long time period. Existing studies are based on datasets that either cover short time periods (such as Jaimovich and Panizza 2010) or omit a large number of countries (such as Reinhart and Rogoff 2010).

Topics: Global governance, Macroeconomic policy
Tags: Eurozone crisis, Fiscal crisis, public debt

Public-debt crises and bad equilibria: Lessons from the GIIPS Countries

Maurizio Bovi, 2 December 2011

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All the GIIPS countries (Greece, Italy, Ireland, Portugal and Spain) have been hit by the current government debt crisis (see eg Manasse and Trigilia 2011).

Topics: Institutions and economics
Tags: institutions, public debt, tax evasion

Private pensions for Europe

Lans Bovenberg, Casper van Ewijk, 20 November 2011

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The current EU debt crisis makes more private funding of pensions desirable.

Topics: EU policies, Financial markets
Tags: pensions, private pensions, public debt

Chipping away at public debt – Sources of failure and keys to success in fiscal adjustment

Anna Ivanova, Paolo Mauro, Edouard Martin, 9 November 2011

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The global financial crisis has caused government debt to soar in the advanced economies. Public concern is rising and debates rage on how to fix the problem.

Topics: International finance, Politics and economics
Tags: Fiscal crisis, public debt

External debt relief but increasing domestic debt

Andrea F Presbitero, 19 November 2010

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The global crisis and the expansionary government reaction in many countries culminated in fast-growing government debt in the US and some European countries. This has revamped the attention of policymakers and academics on the adverse effects of large public debt.

Topics: Development, Global governance
Tags: debt relief, IMF, public debt, World Bank

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