The euro should either be made growth and employment friendly as fast as possible, or it should be dismantled

Nobel laureate Christopher Pissarides was once a passionate believer in the benefits of European monetary union. In light of the damaging effects of the Eurozone crisis, he now writes that the euro requires urgent reforms to restore its credibility. He argues that the single currency should either be dismantled in an orderly way, or the direction of economic policy should […]

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There is a significant divide in how countries of the Eurozone’s north and south react to changes in monetary policy.

The European Central Bank (ECB) is charged with maintaining price stability across the Eurozone, which it does via its monetary policies. While the euro has had some success in smoothing out the asymmetries within the Eurozone, Matteo Barigozzi finds that when the ECB changes monetary policy, the Eurozone’s southern countries experience fluctuations in prices and unemployment outside of the Eurozone’s […]

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A Eurozone-wide IMF programme could save both

In past decades, the International Monetary Fund has had a potent reputation, especially in the developing world. In its programmes in Europe, however, the IMF has had to take a back seat to the desires of the European Commission and the European Central Bank, whose policies have thus far been less than successful. In light of this, Sony Kapoor makes […]

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The DGB’s proposals for a new ‘Marshall Plan’ for Europe may mark the beginning of a discussion on the concrete alternatives to austerity.

For nearly five years, austerity has been touted as the only way to tackle the effects of the Eurozone’s financial crisis. Steve Coulter profiles a new initiative from the German trade union confederation, the Deutsche Gewerkschaftsbund, which aims to leverage Europe’s idle private capital via a ‘European Future Fund’. This fund would focus on green investment, as well as training, […]

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Book Review: The Passage to Europe

Given the current economic crisis, and questions about the legitimacy of the European Union, what is the future of European integration? As the EU faces its most serious economic and political test, Luuk Van Middelaar’s account of its history asks us to reconsider the forces that underpin the EU, hold it together and drive it forward. Renaud Thillaye finds that […]

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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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