Paul de Grauwe

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    The Catalan crisis and Brexit stem from the same kind of nationalism

The Catalan crisis and Brexit stem from the same kind of nationalism

Many observers now expect the Catalan government to make a declaration of independence following the 1 October referendum, but what implications would there be for Catalonia if it did become independent? Paul De Grauwe argues that there are parallels between the Catalan independence movement and other forms of nationalism in Europe. He suggests that such political movements present a […]

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How far should we push globalisation?

From Brexit to the presidential campaign of Donald Trump, it has become common to speak of citizens turning against globalisation. But does popular opposition to globalisation justify rolling back on processes aimed at facilitating free trade? Paul De Grauwe argues that free trade has generated substantial benefits for a large number of people across the world, but at present […]

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How to prevent Brexit from damaging the EU

What should the EU’s priorities be in negotiations with the UK over Brexit? Paul De Grauwe writes that the EU should offer the UK two options: either following a Norwegian style model or leaving entirely and negotiating a free trade agreement in the same manner as other nations such as the United States and Canada. He argues that offering any […]

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The UK’s renegotiation: Keeping up appearances

How far does the UK’s draft renegotiation proposal go in reforming the country’s EU membership? Paul De Grauwe writes that the deal is largely an exercise in keeping up appearances, with most of the agreed terms making little substantive difference to the UK’s terms of membership. He argues that rather than pretending to have achieved real reform, Cameron should […]

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    Both Greece and its creditors must compromise to prevent the risk of a Grexit

Both Greece and its creditors must compromise to prevent the risk of a Grexit

Greece and its creditors have been engaged in a two-month standoff over the release of further financial assistance to the country. Lorenzo Codogno and Paul De Grauwe write that with no agreement yet reached, the possibility of Greece leaving the euro has now become real. They argue that the only solution to the crisis is for both sides to […]

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    Why Denmark should either abandon its peg to the euro or join the single currency

Why Denmark should either abandon its peg to the euro or join the single currency

Following Switzerland’s announcement in January that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, Denmark has faced mounting speculation that it will follow suit and abandon its euro peg. Lorenzo Codogno and Paul De Grauwe write that there is a paradox in the approach of Denmark to the issue: the Danish […]

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    Debt relief for Greece is necessary to avoid a crisis in the Eurozone

Debt relief for Greece is necessary to avoid a crisis in the Eurozone

On 25 January Greece will hold parliamentary elections. The elections have generated uncertainty in the Eurozone given the potential for the radical left party Syriza, which has called for a renegotiation of the country’s bailout conditions, to emerge as the largest party. Paul De Grauwe writes that even if Syriza fails to win power in the upcoming elections, the […]

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Why the European Court of Justice should reject the German Constitutional Court’s ruling on Outright Monetary Transactions

Despite having a positive effect on the economic situation within the Eurozone, the European Central Bank’s Outright Monetary Transactions (OMT) program has proved controversial, with the German Constitutional Court in Karlsruhe recently deeming it illegal under EU law. Paul De Grauwe argues that the ruling reflects a serious misunderstanding of central banking on the part of the German Court, and […]

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The fiscal implications of the ECB’s bond-buying programme

The connection between fiscal and monetary policy is currently under scrutiny by the German Constitutional Court in the context of the European Central Bank’s (ECB) Outright Monetary Transactions bond-buying programme. Paul De Grauwe and Yuemei Ji argue that most analyses are deeply flawed by the misapplication of private-company default principles to the central bank. ECB bond-buying transforms public bonds into […]

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Launching our new podcast series: voxEUROPP

Today EUROPP launches the first episode in our new voxEUROPP series of podcasts. Presented by Chris Gilson and Stuart A Brown voxEUROPP draws on academic experts from EUROPP to discuss the latest issues across European governance, economics, politics, culture and society, both at the European Union and national levels.

Podcast 1: The Rise of the Far Right

 

 Listen + Subscribe via iTunes […]

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The eurozone’s double-dip recession is entirely self-made.

This month the eurozone returned to recession, three years after it emerged from the deep recession of 2008-09. Paul De Grauwe argues that the current situation has been produced by policy failures at the beginning of the crisis. The best initial policy would have been for the eurozone’s creditor countries to increase spending, while the struggling periphery countries implemented austerity […]

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The ECB was right to intervene as lender of last resort, but structural reforms are still needed to save the Eurozone.

Last week the President of the European Central Bank (ECB), Mario Draghi, announced that the ECB would become the Eurozone’s lender of last resort by starting to purchase the sovereign bonds of the area’s stricken economies. Paul de Grauwe addresses two major criticisms of the plan, saying that while this intervention was absolutely necessary, it alone is not enough to […]

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To stabilize the Eurozone, the ECB must set aside its fears and start buying governments’ bonds

Government bond markets in Europe remain volatile, with Spanish and Italian bond rates at near unsustainable levels. Paul De Grauwe argues that the only institution that can stabilize these markets by buying government bonds is the European Central Bank (ECB). The ECB must now overcome its risk averse nature and take advantage of its virtually infinite resources to help to […]

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As the Eurozone hangs on the precipice, the European Commission and the ECB must take swift action to remedy Europe’s deflationary spiral

The seeds of the current crisis were sown nearly twenty years ago when European leaders agreed to create a currency without a country. Now, the Eurozone is split in two, with the creditor countries of the north able to borrow at next to zero interest rates, and those of the south facing massive deficits and economic instability. But both face […]

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The European Central Bank has delegated its lender of last resort duty to panicky bankers who are the slaves of market sentiments. Pumping in over 1,000 billion Euros this way has not stabilized Europe’s sovereign debt markets.

Since December 2011 the European Central Bank (ECB) has pumped two waves of extra liquidity into the European banking system, in an effort to keep it afloat – and persuade backs to invest in sovereign debt. Yet Paul De Grauwe argues that these banks are still wracked with uncertainty, which may lead to further sell-offs of this debt – the […]

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