European Institute

Are the British economy’s prospects faltering?

Until well after the turn of the year, the UK economy seemed to have shrugged off any immediate economic effects of the EU referendum. GDP growth had remained steady at an annual rate of around 2%, enabling ministers to claim the UK was the fastest growing of the major western economies; the total number of people in employment continued […]

Economic growth strategies affect female employment

Eastern European countries had the highest female employment rates in the world during the socialist period. While the transition to capitalism had an initially negative impact on labour markets across the region, by the end of the transition some of these countries managed to recover their female employment to the high levels they had experienced prior to 1989 (see […]

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    The EU must break with neo-liberalism and address the discontents of globalisation

The EU must break with neo-liberalism and address the discontents of globalisation

Edinburgh anti-globalisation protests, by Sam Fentress, under a CC-BY-SA-2.0 licence
How should the European Union react to the decision of the British people to withdraw from the union? This is the question that has been at the centre of the political debate in Europe since the Brexit vote. Paul De Grauwe outlines a future scenario in which the EU could succeed after Brexit. He contends the […]

How far should we push globalisation?

Photo by Fabian Mohr (CC-BY-SA-2.0)
The recent discussions about CETA, the trade agreement between Canada and the European Union, focused almost exclusively on two questions. They are important but certainly not the most fundamental ones. In this article I first discuss these two questions and then turn to the more fundamental question of how far we should push globalisation.

The first question […]

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    What Brexit advocates could learn from the Greek bailout referendum

What Brexit advocates could learn from the Greek bailout referendum

We are living in a new political climate in which key decisions are made on emotions, not facts; elites are distrusted to the point of identifying a conspiracy against the popular will; and leaders are seen as making gross miscalculations in their national strategies. The ‘people’ know better: they seek new leaders who acknowledge their innate good sense and […]

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    Paul Krugman’s criticism of the eurozone can apply to the US

Paul Krugman’s criticism of the eurozone can apply to the US

Mention the euro and even one of the brightest and most original US economists reverts to pop economics.  Paul Krugman’s keynote at a conference of Europeanists in Philadelphia on 15 April 2016 could not have been more packed with the received wisdom on optimum currency areas. It is supposedly a well-developed piece of economic theory, or so the audience […]

Both sides of the UK debate are misleading the public

Claims and counter-claims about how much it costs the UK to belong to the European Union abound. Unsurprisingly, both sides of the debate cherry-pick the statistics that support their side of the argument, but both are also prone to misrepresent the facts and to neglect data that tell a different story.

Part of the explanation for this confusion is that […]

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    Quantitative easing: To deal with the root of the problem, the ECB should tackle non-performing loans

Quantitative easing: To deal with the root of the problem, the ECB should tackle non-performing loans

There were high expectations that during the 10 March 2016, the ECB’s Governing Council would extend its Quantitative Easing Programme. ECB chief Mario Draghi has in the past reiterated his readiness to adopt additional measures should the inflationary objectives not be reached by the upcoming meeting. With the Euro Area core inflation rate well below one percent, further monetary […]