The recent showdown between the parliament and the executive in the US began when a faction in the Republican Party tried to stop the implementation of the healthcare law of President Obama. They refused to raise the legislatively determined ceiling on the federal public debt – a ceiling that has to be raised with the growth of the economy.
War of attrition between the parliament and the executive in 1575
Carlos Álvarez-Nogal, Christophe Chamley, 21 October 2013
Unity in diversity: Protecting the common market with divergent macroprudential policies
Aerdt Houben, Jan Kakes, 30 July 2013
The credit crisis and ensuing sovereign crisis powerfully illustrate the limitations of traditional macroeconomic policies to contain financial imbalances. Despite debate on the desirability to dampen credit cycles and asset-price fluctuations, countries have long been reluctant to include this in policy objectives.
When good intentions go wrong: Effects of bank deregulation and governance on risk taking
Manuel Illueca, Lars Norden, Gregory F Udell, 26 June 2013
The motivation of economic liberalisation is to foster competition in order to increase allocative efficiency, economic growth and social welfare. This paradigm hinges on the assumption that firms maximise value and that more competitors in a market automatically leads to more competition.
Are Germans poorer than other Europeans? The principal Eurozone differences in wealth and income
Giovanni D'Alessio, Romina Gambacorta, Giuseppe Ilardi, 24 May 2013
The Household Survey (European Central Bank 2013) is a joint project of the ECB and all the Eurozone central banks providing harmonised information on the balance sheets of 62,000 households in 15 Eurozone countries (all except Ireland and Estonia).1
Budget balance, structural unemployment and fiscal adjustments: The Spanish case
Javier Andrés, Rafael Doménech, 5 April 2013
One of the most important questions in the current process of fiscal consolidation in many developed economies concerns the size and the pace of the adjustment. An excessive and/or too-fast fiscal retrenchment can have dramatic effects on unemployment and growth, while if it is too slow, it can prove to be ineffective and lack credibility in the eyes of the financial markets.
Another look at Ricardian equivalence: The case of the European Union
Thomas Grennes, Andris Strazds, 28 February 2013
The so-called Ricardian equivalence suggests that a government will have the same effect on private spending whether it raises taxes or takes on additional debt to finance higher government spending. The logic behind it is that as the government gets more indebted, people would put aside more money in expectation of higher taxes in the future.
Winners of a European banking union
Dirk Schoenmaker, Arjen Siegmann, 27 February 2013
The aim of the prospective banking union is to foster financial stability in Europe. The euro sovereign debt crisis has shown that financial stability cannot be managed effectively at the national level, because of the diabolic loop between national governments and banks (Alter and Schüler 2012).
Export shares, price competitiveness and the ‘Spanish paradox’
Miguel Cardoso, Mónica Correa-López, Rafael Doménech, 24 November 2012
Since the launch of the euro, Spanish exporters have been successful in containing the loss of their export share in world markets. This is in contrast to several advanced economies that have experienced significant losses as a result of globalisation and the gain of exports shares by many emerging countries.
Can Spain learn from its ‘export starters’?
Aoife Hanley, Joaquín Monreal-Pérez, 5 November 2012
Spain’s problems of high unemployment and soaring sovereign debt are well known. What is less publicised is Spain’s poor export performance. The numbers tell the story; only 6% of Spain’s manufacturing exports are high-tech, compared with 15% in Germany and 25% in France1.
Protests, riots, rightists rage in Europe – but to no ill effect
Jacob Funk Kirkegaard, 8 October 2012
After a quiet few weeks, political pressures are rising again in Europe. Petrol bombs exploding in Athens and news reports of mounting support for the rightist Golden Dawn party bring into questions the durability of the summer stabilisation in the EZ.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013
Holmes, McGrattan, Prescott
Beck, De Haas, Ongena
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- What’s wrong with Europe?Baldini, Manasse
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood