There is something surreal about the unfolding financial crisis of the Eurozone. The leaders grudgingly do what is needed to prevent disaster in the last minute before it is too late, and the next minute they go back to the behaviour that brought them against the wall in the first place. The result of this brilliant strategy?
The Eurozone in bad need of a psychiatrist
Stefano Micossi, 10 December 2010
A new political deal for Eurozone sustainable growth: An open letter to the President of the European Council
Richard Baldwin, Daniel Gros, Stefano Micossi, Pier Carlo Padoan, Giuliano Amato, 7 December 2010
The unfolding crisis in Europe has focused policymakers’ attention on fiscal austerity and bailouts. We believe that this neglects a major dimension of the new political bargain – one that must be addressed if we are to deal with the severe problems facing the Eurozone and the EU.
All together now? Arguments for a big-bang solution to Eurozone problems
Daniel Gros, 5 December 2010
I hope that everything I write in this column turns out to be irrelevant; I very much hope that it will not be necessary to resort to such drastic actions. Economic logic, however, suggests that it might soon represent the least bad solution to a crisis which keeps getting worse. That said…
The seniority conundrum: Bail out countries but bail in private, short-term creditors?
Daniel Gros, 5 December 2010
European policy-makers might come to regret the statement of the Eurogroup (Eurogroup 2010) that announced the outline of the new European Stability Mechanism that will replace the temporary EFSF from 2013.
The Eurozone slides into a vicious cycle
Charles Wyplosz, 3 December 2010
It is amazing to observe European policymakers, having taken the wrong turn earlier this year, persevere in piling one mistake upon another. It all started when they decided that Greece could not be left to itself. Pressing on with this logic, they have brought the Eurozone to the point where it is contemplating a disaster of historical proportions.
Bank bailout guarantees and public debt
Angelo Baglioni, Umberto Cherubini, 1 December 2010
The turmoil currently taking place in Ireland is the direct consequence of the troubles affecting its banking system and the bailout guarantee provided by the Irish government.
Will the Irish crisis spread to Italy?
Paolo Manasse, Giulio Trigilia, 26 November 2010
Here we go again with talks of the end of the euro. This time, however, the trouble was stirred by President of the European Council himself, Mr. Van Rumpuy. The reason for alarm is well known.
European debt restructuring mechanism as a tool for crisis prevention
Beatrice Weder di Mauro, Jeromin Zettelmeyer, 26 November 2010
The global financial crisis has spread from private companies and individuals and now threatens the finances of sovereign governments, particularly in Europe.
Fixing the flaws in the Eurozone
Stanley W Black, 23 November 2010
What is happening to the Eurozone? Are the troubles of the high-inflation countries (Greece, Ireland, Portugal, and Spain) due to excessive government borrowing that should have been reined in by the Stability and Growth Pact? Is the solution to be found in more stringent enforcement of the excessive deficit procedures?
Major public debt reductions: Lessons from the past, lessons for the future
Christiane Nickel, Philipp Rother, Lilli Zimmermann, 21 November 2010
With world markets raising concern over the huge fiscal imbalances, the policy debate is focusing its attention on how to reduce debt in as successful and sustainable a way as possible (Corsetti 2010, Ruiz-Arranz 2010, Aizenmann and Pasricha 2010).
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Helicopter money as a policy optionReichlin, Turner, Woodford
- Rethinking macroeconomic policyBlanchard
- 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
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí