The ECB’s three mistakes in the Greek crisis and how to get sovereign debt right in the future

Jeffrey Frankel, 16 May 2011

a

A

By now just about everybody agrees that the European bailout of Greece has failed (see for example Darvas et al. 2011). The debt will have to be restructured.

Topics: EU policies, Europe's nations and regions
Tags: ECB, Eurozone crisis, Fiscal crisis, Greece

The troika should target the trade and the income balance deficits

Ricardo Cabral, 15 May 2011

a

A

Greece, then Ireland, and more recently Portugal have applied for EU and IMF financial aid. A troika of European Commission, ECB, and IMF officials have negotiated accords for ambitious adjustment programmes with either two or three main components, as mandated by the Eurogroup and the Ecofin Ministers (2010a; 2010b; 2011):

Topics: EU policies, Europe's nations and regions
Tags: ECB, Eurozone crisis, financial aid, IMF

Are Michigan and Illinois like Greece and Ireland?

Francis A. Longstaff, Andrew Ang, 10 May 2011

a

A

US states are a lot like Eurozone nations.

Topics: Financial markets, Global crisis, International finance
Tags: Eurozone crisis, Fiscal crisis

Managing a fragile Eurozone

Paul De Grauwe, 10 May 2011

a

A

A monetary union is more than just a single currency and a single central bank. Countries that join a monetary union lose more than one instrument of economic policy. They lose their capacity to issue debt in a currency over which they have full control.

Topics: EU policies, International finance
Tags: currency union, Eurozone crisis

The R word

Charles Wyplosz, 29 April 2011

a

A

Rumours circulate widely these days. European policymakers talk about a restructuring of public debts in some countries (see for example Portes 2011). Rumours may be unfounded but they are telling of what people think about.

Topics: EU policies, Europe's nations and regions
Tags: Eurozone crisis, Fiscal crisis, Greece, Ireland, Italy, Portugal, Spain

Sovereign Default Risk and Bank Fragility in Financially Integrated Economies

Olivier Jeanne, Patrick Bolton, 25 April 2011

Vox users can download CEPR Discussion Paper 8358 for free here. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Journalists are entitled to free DP downloads on request; please contact pressoffice@cepr.org. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

URL: www.cepr.org/DP8358
Topics: Financial markets, International finance, Macroeconomic policy
Tags: banking, collateral, contagion, default, Eurozone crisis, financial integration, government debt

The lessons from the Icesave rejection

Gylfi Zoega, Jon Danielsson, 27 April 2011

a

A

The population of Iceland has refused – for the second time – to pay the minimum guaranteed deposits of UK and Dutch depositors in its failed Icesave high-interest accounts. This would have reimbursed the governments of the UK and Netherlands for unilaterally compensating savers in Icesave, the failed Icelandic bank operating accounts in these two countries.

Topics: Europe's nations and regions, Global crisis
Tags: Eurozone crisis, Fiscal crisis, Iceland, Icesave, Netherlands, UK

A Trichet Plan for the Eurozone

Gary Evans, Peter Allen, 24 April 2011

a

A

In April 1989, Mexico’s external debt negotiator, Angel Gurria – currently Secretary-General of the OECD – asked his country’s commercial bank creditors for a 55% haircut on their sovereign obligations. This was the opening pitch of the Brady Plan that finally resolved the Latin American debt crisis.

Topics: EU policies, Europe's nations and regions, Monetary policy
Tags: European Central Bank, Eurozone crisis, Fiscal crisis, Latin American Crisis

The trouble with the European Stability Mechanism

Paolo Manasse, 5 April 2011

a

A

The war in Libya and the terrible disasters in Japan have diverted the public attention from the conclusions of the most recent European Council (24 and 25 March 2011). Most commentators have noted the limited scope of the decisions (such as Euro Intelligence (2011) and Münchau 2011 in the Financial Times).

Topics: EU policies, Europe's nations and regions
Tags: European Stability Mechanism, Eurozone crisis, Portugal, Spain

Do some countries in the Eurozone need an internal devaluation? A reassessment of what unit labour costs really mean

Jesus Felipe, Utsav Kumar, 31 March 2011

a

A

Along the periphery of Europe, there is supposedly a new crisis to add to the growing list, i.e.

Topics: EU policies, Europe's nations and regions, International trade
Tags: competitiveness, Eurozone crisis, exchange-rate policy

Vox eBooks

Events