Kevin Daly, Tim Munday, Saturday, November 28, 2015 - 00:00

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.

Refet S. Gürkaynak, Troy Davig, Wednesday, November 25, 2015 - 00:00

Central banks around the world have been shouldering ever-increasing policy burdens beyond their core mandate of stabilising prices. This column considers the social welfare implications when central banks take on additional mandates that are usually the domain of other policymakers. Additional mandates are shown to worsen trade-offs faced by the central bank, while distorting the incentives of other policymakers. Central bank ‘mandate creep’ may be detrimental to welfare.

Andrew Foote, Michel Grosz, Ann Huff Stevens, Tuesday, November 17, 2015 - 00:00

In light of the Great Recession, we continue to learn new ways in which economic downturns directly affect the labour market. This column suggests that following an adverse demand shock, individuals exit local labour markets primarily through migration, but that has become less prominent in the Great Recession. Faced with declining economic prospects, workers are becoming more likely to stay put, without re-entering the labour market. 

Lawrence H. Summers, Antonio Fatás, Sunday, October 25, 2015 - 00:00

The global financial crisis has permanently lowered the path of GDP in all advanced economies. At the same time, and in response to rising government debt levels, many of these countries have been engaging in fiscal consolidations that have had a negative impact on growth rates. We empirically explore the connections between these two facts by extending to longer horizons the methodology of Blanchard and Leigh (2013) regarding fiscal policy multipliers. Using data seven years after the beginning of the crisis as well as estimates on potential output our analysis suggests that attempts to reduce debt via fiscal consolidations have very likely resulted in a higher debt to GDP ratio through their negative impact on output.  Our results provide support for the possibility of self-defeating fiscal consolidations in depressed economies as developed by DeLong and Summers (2012).

Athanasios Orphanides, Wednesday, November 11, 2015 - 00:00

There is generally consensus among macroeconomists that monetary policy works best when it is systematic. Following the financial crisis, the US Federal Reserve shifted from long-term, systematic policy to short-term goals targeting unemployment. This column argues that, while these were appropriate in the aftermath of the downturn, such policy accommodations have been pursued for too long since. The need for a somewhat accommodative policy cannot be used to defend the current non-systematic policy and excessive emphasis on short-term employment gains.

Lola Gadea, Ana Gomez-Loscos, Gabriel Pérez-Quirós, Monday, October 26, 2015 - 00:00

The Great Moderation is one of the most important changes in the US business cycle since statistics where gathered. This column contributes three main ideas – that output volatility remains subdued despite the tumult created by the Great Recession, that the Great Moderation structural break is found when considering a long historical dataset, and that the nature of the volatility reduction associated with the Great Moderation is linked to the features of expansion phases, in particular, to the absence of high growth recoveries.

Zoltan Jakab, Michael Kumhof, Thursday, June 18, 2015 - 00:00

Problems in the banking sector played a seriously damaging role in the Great Recession. In fact, they continue to. This column argues that macroeconomic models were unable to explain the interaction between banks and the macro economy.  The problem lies with thinking that banks create loans out of existing resources. Instead, they create new money in the form of loans. Macroeconomists need to reflect this in their models.

Francesco Bianchi, Wednesday, April 22, 2015 - 00:00

Anusha Chari, Peter Blair Henry, Friday, March 6, 2015 - 00:00

Jan van Ours, Friday, February 27, 2015 - 00:00

Hans Holter, Dirk Krueger, Serhiy Stepanchuk, Friday, February 20, 2015 - 00:00

Philippe Bacchetta, Kenza Benhima, Céline Poilly, Thursday, February 19, 2015 - 00:00

Juan Dolado, Monday, February 9, 2015 - 00:00

Paul De Grauwe, Friday, January 30, 2015 - 00:00

Laurence Ball, Sandeep Mazumder, Wednesday, January 7, 2015 - 00:00

Atsushi Inoue, Chun-Hung Kuo, Barbara Rossi , Monday, November 24, 2014 - 00:00

Atsushi Inoue, Chun-Hung Kuo, Barbara Rossi , Monday, November 24, 2014 - 00:00

Cosmin L. Ilut , Matthias Kehrig, Martin Schneider, Sunday, October 26, 2014 - 00:00

David Chambers, Elroy Dimson, Monday, October 20, 2014 - 00:00

Marcus Miller, Lei Zhang, Wednesday, September 10, 2014 - 00:00


CEPR Policy Research