Twenty years ago, in September 1992, the Swedish central bank raised its policy rate to 500% in an attempt to defend the fixed exchange rate during the European currency crisis. The Swedish economy was then already in the midst of a severe economic crisis.
Fiscal consolidation in Sweden: A role model?
Martin Flodén, 25 September 2012
Misdiagnosing the Eurozone crisis: Perspectives from Asia
Pradumna B. Rana, 22 September 2012
Given the raft of gloomy economic data, it is hardly appropriate to be optimistic about the prospects for the sustainability of the monetary union in Europe. But in one key area some progress is being made. The root causes of the crisis have been identified and actions are being taken to address them.
The case for temporary inflation in the Eurozone
Stephanie Schmitt-Grohe, Martín Uribe, 16 September 2012
Vox readers can download CEPR Discussion Paper 9133 for free here.
What Germany should fear most is its own fear
Paul De Grauwe, Yuemei Ji, 18 September 2012
The large expansion of TARGET2 claims and liabilities since the start of the sovereign debt crisis has led to fears that countries like Germany would lose vast amounts if the Eurozone broke up (Sinn and Wollmershäuser 2012)1.
Expectations and asset prices: Keynes meets Hayek
Giovanni Cespa, Xavier Vives, 18 September 2012
The financial crisis has vividly put into question the alignment of asset prices and fundamental values.
Why early sovereign default could save the euro
Harald Hau, Ulrich Hege, 8 September 2012
The crisis in the Eurozone is primarily a debt crisis. Debt overhang, whether public or private (as it originally was in Ireland and Spain), impedes investment and growth (Reinhart and Rogoff 2010).
The limits of a purely intra-euro rebalancing strategy
Zsolt Darvas, 5 September 2012
The perceived failure of Greece, Portugal, and Spain to achieve sustainable external positions and economic growth inside the Eurozone is a major factor behind the current crisis. Their trade deficits should be turned to sizeable surpluses in which real exchange rate developments should play a role.
Africa gets hit by Eurozone crisis
Monica Eaton, Michael J Ferrantino, 4 September 2012
There is currently an asymmetric contraction in merchandise trade focused on Europe. Data from CPB World Trade Monitor show real Eurozone imports declining by 7.7% in the 12 months ending May 2012, at a time when real world trade has expanded by 3.0%.
Time for international monetary coordination
Paolo Manasse, 3 September 2012
Many observers of the European Sovereign debt saga had long realised that the ECB was the only European institution up to the task of avoiding a breakup of the euro (see for instance Eichengreen 2009 on this site). The newly forged institutions, the ESFS/ESM, are both ill designed and inadequately funded (Manasse 2011).
Jackson Hole, the crisis and policy responses: A new orthodoxy
Richard Wood, 31 August 2012
Demand, output, manufacturing activity and exports are weakening in many parts of the industrialised world. Quantitative easing policies have generally run their course, as interest rates are at the zero bound or thereabouts. In the Eurozone it is questionable whether the ‘one-size-fits-all’ policy interest rate approach is helpful or meaningful, or whether it can be sustained.
- 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
- The case for 4% inflationBall
- 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