Future developments of global imbalances
by Zsolt Darvas, Jean Pisani-Ferry on 15 March 2010
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Category: EXTERNAL PUBLICATIONS
Topics: Budgetary and monetary policies, European and global governance
Although the crisis was not triggered by a sudden capital outflow from current account deficit countries, such as the US, the deep roots of global imbalances and the crisis coincide to a large extent. Bruegel Director Jean Pisani-Ferry and Research Fellow Zolt Darvas examine the role of global imbalances to the crisis and explain how changes in the international monetary system can mitigate global imbalances.
This document was requested by the European Parliament's Committee on Economic and Monetary Affairs.
Think Global Act European II
by Jean Pisani-Ferry, Bruno van Pottelsberghe , Jakob von Weizsäcker on 04 March 2010
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Category: EXTERNAL PUBLICATIONS
Topics: European and global governance
On 4 March Notre Europe launched the second edition of Think Global Act European. This issue, dedicated to the Spanish, Belgian and Hungarian Trio Presidency, compiles analysis and recommendations from 14 different think tanks on the different issues concerning the changing role of the rotating presidency and the trio themselves. Bruegel has contributed with three papers: the first one by Bruegel Director Jean Pisani-Ferry on Internal and external challenges for the EU -coauthored by András Inotai, Director of the Institute for World Economics of the Hungarian Academy of Sciences / GKI-; and the other two by Senior Fellow Bruno van Pottelsberghe on The governance of the European patent system, and Research Fellow Jakob von Weizsäcker on Greening the Stimulus Debt.
Monetary Policy and Risk Taking
by Ignazio Angeloni on 15 February 2010
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Category: EXTERNAL PUBLICATIONS
Topics: Budgetary and monetary policies
In this paper Bruegel Visiting Scholar Ignazio Angeloni (European Central Bank), Ester Faia (Goethe University Frankfurt, Kiel IfW and CEPREMAP) and Marco Lo Duca (European Central Bank) examine the links between monetary policy, financial risk and the business cycle, combining data evidence and a new DSGE model with banks. The model includes banks (modeled as in Diamond and Rajan, JF 2000 and JPE 2001) and a financial accelerator (Bernanke et al., 1999 Handbook). A monetary expansion increases the propensity of banks to assume risks. In turn, financial risks affect economic activity and prices. This "risk-taking" channel of monetary transmission, absent in pure financial accelerator models, operates via the leverage decisions of banks. The model results match certain features of the data, as emerged in recent panel data studies and in our own time series estimates for the US and the euro area.
Financial Transaction Tax: Small is Beautiful
by Zsolt Darvas, Jakob von Weizsäcker on 11 January 2010
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Category: EXTERNAL PUBLICATIONS
Topics: Financial markets and regulation
Resident Fellows Zsolt Darvas and Jakob von Weizsäcker wrote this paper on the pros and cons of a Financial Transaction Tax (FTT) following testimony von Weizsäcker gave for the Economic and Monetary Affairs Committee of the European Parliament. They argue that a small tax on financial transactions is justifiable in order to limit socially undesirable transactions. Please see here for the authors' accompanying presentation.
A revised version of this paper was published as a Bruegel Policy Contribution in February 2010. Please see here to download the Policy Contribution.
Economic Policy 61
by , , , André Sapir on 01 January 2010
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Category: EXTERNAL PUBLICATIONS
Topics: European and global governance, Research, innovation and growth, Trade, investment and competitiveness
The latest edition of Economic Policy, edited by Georges De Menil, Richard Portes and Hans-Werner Sinn, includes four papers that draw attention to pertinent policies related to governance of universities, the reforms and re-elections in OECD countries, the effects of employment protection legislation and financial market imperfections on investment and the drugs policy related to cannabis. The four papers were first presented as drafts at a panel meeting in the European Commission in Brussels in April 2009.
Bruegel Senior Fellow André Sapir along with Philippe Aghion , Mathias Dewatripont, Caroline Hoxby and Andreu Mas-Colell makes a comparitive analysis of governance and performance of universities in Europe and the US. The authors conclude that European universities can benefit from greater autonomy and accountability.