To be effective in containing budgetary imbalances, fiscal rules need to be equipped with appropriate characteristics within the institutional framework of budgetary policy: whether a fiscal rule will be respected or not depends to a large extent on its institutional … Continue reading →
I apologize to my foreign readers for being so lazy in this period. But I have a good excuse. For the first time since the beginning of this blog in 2011 facts are moving faster than ideas, anti-austerity policy-makers than anti-austerity … Continue reading →
For my English readers asking me for updates on the dramatic European stagnation, I wish to convey to them the news that Mario Draghi, the President of the European Central Bank, has just posted this horrible graph that tells the story … Continue reading →
Take two unrelated events, one in Lindau, Germany, the other in Jackson Hole, United States, taking place in the same days. You have the chance to listen to a Nobel Prize winner and the Chairman of a key Central Bank. … Continue reading →
Il testo integrale della mia lettera al Financial Times pubblicato oggi in forma ridotta. The full text of todays’ letter to the Financial Times, reduced for space reasons. http://on.ft.com/1ohJuEl (for subscribers only, solo per abbonati) * Sir, Europe has managed to … Continue reading →
After the release of this week’s GDP figures, the debt dynamics of Europe – above all Italy – once again look ominous. Italy has the eurozone’s biggest debts and is the biggest loser from the arrangement whereby Germany profits from … Continue reading →
The new ECB report on the access to finance of SMEs in Europe is out. It depicts the usual bleak scenario, albeit slightly improved on average, vastly different across countries of the euro area. The most striking feature? The report … Continue reading →
A quick disagreement with Paul De Grauwe is once again needed. He argues against exiting the euro (I share his views) but warns that something must be done otherwise the European architecture will crumble apart (I share his views). The solution? … Continue reading →
Sometimes things move one step forward, even in the Economics profession. Significantly, a recent paper by economists Daren Acemoglu and James Robinson reminds us how time is way overdue for economic theories to take into account the pitfalls of economic advice … Continue reading →