Le débat sur l’austérité budgétaire a repris en Europe. Ce n’est pas étonnant. Read more
Bruegel blog
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La voie étroite de l’intelligence budgétaire
23rd April 2013
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What is the net of good and bad news from Brussels and Washington?
22nd April 2013
The short answer is: somewhat positive. The longer, but still broad-brush, answer starts from noting that two important documents have been issued in the last few days: the In-depth reviews following the so called AMR (Alert Mechanism Report) from the European Commission and the World Economic Outlook from the IMF. Read more
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Blogs review: The Reinhart and Rogoff debacle
19th April 2013
What’s at stake: The authors of the widely acclaimed book on the history of financial crises, This Time is Different, have faced the mother of all academic backlashes after a group of economists identified important flaws (including basic coding errors) in their analysis of the relationship between public debt and economic growth. Read more
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New IMF growth forecasts: EU revised downward, once again
16th April 2013
The IMF published its new World Economic Outlook today (see the report here and the database here). Once again, euro-area’s outlook has been revised downward, but this is not the case for the USA and Japan. Read more
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China needs to set its services free
16th April 2013
China enjoyed a growth rate of more than 10 per cent from 2000 to 2010. But its economy is now in trouble. Read more
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Europe’s banks need to be recapitalised – now
15th April 2013
Europe’s growth performance was disappointing before the financial crisis. It has been dismal since. Five years into the “great recession”, the risk for Europe is to remain trapped in stagnation. Vicious circles are apparent across the continent: weak growth undermines deleveraging and fuels banking fragility. Read more
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European Emission trading - A blueprint for a countercyclical policy without teeth
11th April 2013
Carbon emissions have been falling, but perhaps not for the most sustainable reasons. The graphs below show volumes of carbon emissions produced by the European industrial sector. Read more
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Blogs review: Understanding the mechanics and economics of Bitcoins
10th April 2013
What’s at stake: The value of Bitcoins – the peer-to-peer currency – has been soaring so much of late that you have certainly heard about it. It is also likely that you still don’t fully understand how this decentralized payment mechanism works in practice as it is hard to build a bridge between the overly general and the overly complicated descriptions of the system. Here is our (imperfect) take at it based on what we have read so far. The monetary economics of it is fairly straightforward and uninteresting, but the mechanics of making payments over a communications channel without a trusted party is really interesting. Read more
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Italy’s elections had little impact on TARGET2 balances
9th April 2013
We documented early signs of improved market sentiment towards struggling euro members in this post at the end of January. Since then, however, European economic data has been mostly disappointing. Read more
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Preventing bank runs – a primer
2nd April 2013
Worries about Cyprus at first decreased with the second agreement between the Cypriot government and euro area partners. Controversially, however,capital controls have been used as a way to prevent an outright bank run. This blog briefly reviews the literature on bank runs and comments on different ways to prevent them. Read more
