Past Event

The Euro trap: on bursting bubbles, budgets and beliefs

European Macroeconomics and Governance

Date: Dec 4 - Topic: European Macroeconomics & Governance

On 4 December we welcome Professor Hans-Werner Sinn at Bruegel to present his latest book, ‘The Euro Trap’, in which he provides a critical assessment of the Eurozone crisis and details the policy failures in trying to solve it. Sinn highlights the mistakes in creating a currency union without a full political union – flaws exposed by the financial crisis to devastating effect.

At a time when concerns around the Eurozone’s economic malaise are growing once again, Sinn argues that the peripheral Eurozone countries are trapped in a flawed currency system and plagued by a fundamental lack of competitiveness. Contrary to the current approach of liquidity injection by the ECB and bailouts, Prof Sinn advocates a radical approach – limit the role of the ECB, exit the regime of soft budget constraints and write off public and bank debt to allow the struggling countries to breathe again. Furthermore, he suggests the euro should allow countries to exit in order to make it easier for them to restore their competitiveness before re-joining the currency union.

To discuss all this and more around Europe’s economic future we have Philippe Weil, Professor at ULB and President of the Observatoire français des conjonctures économiques.

Speakers

  • Hans-Werner Sinn, Professor of Economics and Public Finance, University of Munich; President, Ifo Institute; President, CESifo Group, Member of the Advisory Council of the German Ministry of Economics
  • Philippe Weil, Professor at ULB and President of the Observatoire français des conjonctures économiques
  • Chair: Zsolt Darvas, Senior Fellow, Bruegel

Practical details

  • Venue: Bruegel, Rue de la Charité 33, 1210 Brussels
  • Time: Thursday 4 December 2014, 12:45-14:30. Lunch will be served at 12:45 after which the event will begin at 13:00.
  • Contact: Matilda Sevón, Events Manager – [email protected]

Event Materials

Event Summary

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Blog Post

How have the European Central Bank’s negative rates been passed on?

Negative rate cuts are not that different from ‘standard’ rate cuts. Like them, they reduce banks’ margins, but this effect does not appear to be amplified below 0%.

By: Grégory Claeys and Lionel Guetta-Jeanrenaud Topic: European Macroeconomics & Governance Date: July 7, 2021
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Blog Post

Inflation!? Germany, the euro area and the European Central Bank

There is concern in Germany about rising prices, but expectations and wage data show no sign of excess pressures; German inflation should exceed 2% to support euro-area rebalancing but is unlikely to do so on sustained basis.

By: Guntram B. Wolff Topic: European Macroeconomics & Governance Date: June 9, 2021
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Blog Post

Emergency Liquidity Assistance: A new lease of life or kiss of death?

Use of Emergency Liquidity Assistance to prop up euro-area banks needs to be more transparent; available evidence suggests its use has not always been within the rules.

By: Francesco Papadia and Leonardo Cadamuro Topic: European Macroeconomics & Governance Date: May 28, 2021
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Opinion

Europe must fix its fiscal rules

The pandemic has shown that the EU’s spending framework reflects an outdated economic orthodoxy.

By: Maria Demertzis Topic: European Macroeconomics & Governance Date: May 27, 2021
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Podcast

Podcast

A stronger euro comes with more responsibility

What does strategic sovereignty mean to and for Europe?

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: May 19, 2021
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Opinion

The ECB needs political guidance on secondary objectives

While EU Treaties clearly stipulate that the ECB “shall support the general objectives of the European Union”, it is not appropriate to simply stand by, wishing that the ECB will use its discretionary power to act on them. Political institutions of the EU should prioritise the secondary goals to legitimise the ECB’s action.

By: Pervenche Béres, Grégory Claeys, Nik de Boer, Panicos O. Demetriades, Sebastian Diessner, Stanislas Jourdan, Jens van ‘t Klooster and Vivien Schmidt Topic: European Macroeconomics & Governance Date: April 22, 2021
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Past Event

Past Event

An alpine divide? Comparing economic cultures in Germany and Italy

A discussion of Italian and German macro-economic cultures and performances.

Speakers: Thomas Mayer, Patricia Mosser, Marianne Nessén, Hiroshi Nakaso, Francesco Papadia, André Sapir and Jean-Claude Trichet Topic: European Macroeconomics & Governance Date: April 13, 2021
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Past Event

Past Event

The role of the ECB in stabilizing sovereign debt markets

What are the main lessons of ECB interventions in specific sovereign debt markets?

Topic: European Macroeconomics & Governance Date: April 1, 2021
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Past Event

Past Event

Presentation of the Euro Yearbook 2021

Join us for the launch of the eighth edition of the 'Euro Yearbook'

Speakers: Maria Demertzis, Fernando Fernández, Fiona Maharg-Bravo, Antonio Roldán and Jorge Yzaguirre Topic: European Macroeconomics & Governance Date: March 12, 2021
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External Publication

When and how to unwind COVID support measures to the banking system?

Study of regulatory measures and supervisory practices that have supported public guarantee schemes and moratoria in euro-area countries prepared for the ECON committee of the European Parliament.

By: Alexander Lehmann Topic: European Macroeconomics & Governance Date: March 9, 2021
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Past Event

Past Event

Disruption or transformation: the impact of a digital euro on the financial system

How would a digital Euro impact the financial system?

Speakers: Fabio Panetta and Guntram B. Wolff Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 10, 2021
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Podcast

Podcast

The geopolitics of money

The current debate on currencies is driven by politics rather than economics.

By: The Sound of Economics Topic: Global Economics & Governance Date: December 9, 2020
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