Found 7 article(s) for author 'Euro'

The Eurozone Must Reform or Die

The Eurozone Must Reform or Die. Kenneth Rogoff, June 14, 2017, Opinion, “With the election of a reform-minded centrist president in France and the re-election of German Chancellor Angela Merkel seeming ever more likely, is there hope for the stalled single-currency project in Europe? Perhaps, but another decade of slow growth, punctuated by periodic debt-related convulsions, still looks more likely. With a determined move toward fiscal and banking union, things could be much better. But, in the absence of policies to strengthen stability and sustainability, the chances of an eventual collapse are much greater.Link

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Understanding the Political Economy of the Eurozone Crisis

Understanding the Political Economy of the Eurozone Crisis. Jeffry Frieden, 2017, Paper, “The Eurozone crisis constitutes a grave challenge to European integration. This article presents an overview of the causes of the crisis and analyzes why it has been so difficult to resolve. We focus on how responses to the crisis were shaped by distributive conflicts both among and within countries. On the international level, debtor and creditor countries have fought over the distribution of responsibility for the accumulated debt; countries with current account surpluses and deficits have fought over who should implement the policies necessary to reduce the current account imbalances. Within countries, interest groups have fought to shift the costs of crisis resolution away from themselves.Link

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The Euro Crisis: Where to From Here?

The Euro Crisis: Where to From Here? Jeffrey Frankel, May/June 2015, Opinion. “Germans cannot agree to unlimited bailouts of euro members.  On the other hand, if they had rigidly insisted on the founding principles (fiscal constraints, “no bailout clause,” and low inflation as the sole goal of the ECB), the euro would not have survived the post-2009 crisis.  The impact of fiscal austerity has been to raise debt/GDP ratios among periphery countries, not lower them.  The eurozone will endure, but through a lost decade of growth.   It would help if the ECB further eased monetary policy, which it could do by buying US treasury bonds…Link

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Over-optimistic Official Forecasts and Fiscal Rules in the Eurozone

Over-optimistic Official Forecasts and Fiscal Rules in the Eurozone. Jeffrey Frankel, December 19, 2013, Paper. “Eurozone members are supposedly constrained by the fiscal caps of the Stability and Growth Pact. Yet ever since the birth of the euro, members have postponed painful adjustment. Wishful thinking has played an important role in this failure. We find that governments’ forecasts are biased in the optimistic direction, especially during booms. Eurozone governments are especially over-optimistic when the budget deficit is over the 3% cap at the time the forecasts are made. Those exceeding this cap…” Link verified March 28, 2014

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Debt Levels, Debt Composition, and Sovereign Spreads in Emerging and Advanced Economies

Debt Levels, Debt Composition, and Sovereign Spreads in Emerging and Advanced Economies. Ricardo Hausmann, September 2013, Paper. “This paper studies the relationship between sovereign spreads and the interaction between debt composition and debt levels in advanced and emerging market countries. It finds that in emerging market countries there is a significant correlation between spreads and debt levels. This correlation, however, is not statistically significant in countries where most public debt is denominated in local currency. In advanced economies, the magnitude of the correlation…” Link Verified October 19, 2014

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Debt Levels, Debt Composition, and Sovereign Spreads in Emerging and Advanced Economies

Debt Levels, Debt Composition, and Sovereign Spreads in Emerging and Advanced Economies. Ricardo Hausmann, August 2013. “This paper studies the relationship between sovereign spreads and the interaction between debt composition and debt levels in advanced and emerging market countries. It finds that in emerging market countries there is a significant correlation between spreads and debt levels. This correlation, however, is not statistically significant in countries where most public debt is denominated in local currency. In advanced economies, the magnitude of the correlation between debt levels and spreads is about one fifth of the corresponding correlation for emerging market economies…” Link

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The Euro and Structural Reforms

The Euro and Structural Reforms. Alberto Alesina, November 2008, Paper. “This paper investigates whether or not the adoption of the Euro has facilitated the introduction of structural reforms, defined as deregulation in the product markets and liberalization and deregulation in the labor markets. After reviewing the theoretical arguments that may link the adoption of the Euro and structural reforms, we investigate the empirical evidence. We find that the adoption of the Euro has been associated with an acceleration of the pace of structural reforms in the product market…” Link

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