What’s wrong with Europe?

Isabella Rota Baldini, Paolo Manasse, 4 November 2013

CEPR Policy Insight No.67 is available to download free of charge here.

URL: http://www.cepr.org/active/publications/policy_insights/viewpi.php?pino=67
Topics: EU institutions
Tags: Eurozone crisis, productivity, US

What’s wrong with Europe?

Isabella Rota Baldini, Paolo Manasse, 4 November 2013

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The US and Europe: a tale of two cities

Topics: EU institutions
Tags: Eurozone crisis, productivity, US

A fiscal perspective on EU sovereign credit ratings: Did the credit-rating agencies get them right?

Mike Wickens, Vito Polito, 30 October 2013

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The financial crisis has put EU and US sovereign credit ratings centre-stage in a way not seen before. Previously, it was taken for granted that all Eurozone governments could borrow at more or less the same risk-free rate as Germany, and that Germany, the UK, and the US would be rated triple-A.

Topics: Global crisis, International finance
Tags: credit-rating agencies, Eurozone crisis, sovereign debt

International cooperation and central banks

Harold James, 8 October 2013

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Tackling the aftermath of a major financial crisis, the origins of which lie in ‘global imbalances’ and whose transmission mechanisms are cross-national, seems prima facie to demand more substantial and institutionalised cooperation. However, in the five years since the collapse of Lehman Brothers, visions of what central banks can and should do have changed profoundly.

Topics: Global crisis, International finance
Tags: Central Banks, Eurozone crisis, global crisis, global imbalances, monetary policy, policy coordination

Credit rating agencies and the Eurozone Crisis: What is the value of sovereign ratings?

Norbert Gaillard, 9 September 2013

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The inability of credit rating agencies to anticipate sovereign-debt crises and the tendency to overreact once financial difficulties have piled up are well-known phenomena. Ferri et al. (1999) show that the downgrades by Moody’s and S&P exacerbated the Asian crisis in 1997. Examining the Great Depression, Gaillard (2011) and Flandreau et al.

Topics: Europe's nations and regions, Global crisis
Tags: Eurozone crisis

Fiscal stimulus in times of high public debt: Reconsidering multipliers and twin deficits

Christiane Nickel, Andreas Tudyka, 7 September 2013

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The stimulus impact of a government-spending shocks varies with the economic environment (Ilzetzki, Mendoza, and Végh 2013). One important determinant is the level of government indebtedness – particularly when the nation’s fiscal sustainability may be in doubt. The economic logic of this is straightforward.

Topics: Macroeconomic policy
Tags: Eurozone crisis, fiscal stimulus

Sovereign default risk and banks in Europe’s monetary union

Harald Uhlig, 5 September 2013

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With the one year anniversary of ECB President Draghi’s announcement to “do whatever it takes” and the announcement of the OMT (Outright Monetary Transactions) programme, bond yields have declined and fears of sovereign defaults have receded in countries such as Portugal, Spain and Italy. We all hope that this danger has passed!

Topics: Global crisis, International finance
Tags: Eurozone crisis

External liabilities and crisis risk

Luis AV Catão, Gian Maria Milesi-Ferretti, 4 September 2013

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Much has been written about the causes of the global financial crisis of 2008 – the role of the US subprime crisis as a triggering event, the generalised period of easy credit and financial excesses fuelling growing economic and financial vulnerabilities, the failures to properly regulate large systemic financial institutions.

Topics: Global crisis
Tags: debt, Eurozone crisis, liabilities, net external debt

The downsizing dilemmas of European employers

Hendrik P van Dalen, Kène Henkens, 28 August 2013

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Drastic measures are taken when managers formulate strategies to survive economic crises. Among these are downsizing, outsourcing, firing workers and cutting back on wages. But how do firms balance their interests against those of their workers?

Topics: Labour markets
Tags: downsizing, Eurozone crisis, firing, hiring, unemployment

Is there a future for international banks?

Dirk Schoenmaker, 25 August 2013

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The international, centralised, business model of banks has come under pressure after the global financial crisis. Supervisors are leaving their traditional consolidated approach, under which a bank as a whole is assessed. Instead, they are moving towards a stand-alone approach, under which the national subsidiaries are supervised separately.

Topics: Global crisis, International finance
Tags: banking, Eurozone crisis, international banks, Too big to fail

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