How the Brexit Referendum Will Foster Uncertainty, Volatility and Risk

How the Brexit Referendum Will Foster Uncertainty, Volatility and Risk

photo: Rareclass The UK’s EU referendum is too tight to call, which will virtually ensure protracted economic uncertainty, market volatility and political risk. The worst has already happened. On June 23, the UK will have its referendum on the European Union (EU) and the Brits will decide whether they should remain in or leave the EU. […]

Brexit: a déjà vu?

Brexit: a déjà vu?

Key takeaway – History has proven that the United Kingdom (UK) is a reluctant European: it systematically questions – but eventually integrates in – the European Union (EU). On June 23, 2016, a referendum will decide whether the UK should remain in the EU. This is not a first: in 1974, just one year after […]

How Europe Can Survive Without Introducing Sovereign Debt Limits

How Europe Can Survive Without Introducing Sovereign Debt Limits

photo: Chris Goldberg EU financial policymakers appear to be once more in a deadlock situation over proposals to limit the sovereign risk exposure of European banks. The strong exposure of some banks in the southern European periphery in their national sovereign’s debt was seen by many as one of the contributing factors to the ongoing sovereign […]

The Knowns and Unknowns of the European Competitiveness Debate

The Knowns and Unknowns of the European Competitiveness Debate

photo: European Parliament Micro-economic features of economic systems can have a major impact on national performance. Policymakers should therefore reconfigure their scoreboards to reflect the roles played in a country’s economic growth by large internationalized firms, global value chains or resource reallocation. This column reviews some key developments in understanding these features and argues that researchers […]

The Human Highway to Europe: Roadblocks and Detours

The Human Highway to Europe: Roadblocks and Detours

The European Union is facing the largest migration crisis since the aftermath of World War II. Wars in Syria and Iraq are the immediate sources of displaced people seeking peace and prosperity in Europe. The large volume of migrants in a short period exceeds the ability and willingness of Europeans to process and accept migrants. […]

Monetary Policy and Capital Centralisation in the EMU

Monetary Policy and Capital Centralisation in the EMU

photo: Theophilos Papadopoulos The ‘unconventional’ monetary policies implemented by central banks seem to have failed. Quantitative easing, zero interest rates and – more recently – negative interest rate policies have not been able to bring inflation and growth targets back to ‘normal’ levels. On the contrary, the world’s major economies are close to deflation. The European […]

Strengthening “Mario’s Plan”

Strengthening “Mario’s Plan”

photo: European Parliament The bottom line is that unconventional monetary policies that move away from repairing markets or institutions to changing prices and inflationary expectations seem to be a step into the dark. (Rajan 2013) A step into the dark Following the announcement of last 10 March, as part of its enhanced monetary policy action, Mario […]

The End of Europe (As We Know It)?

The End of Europe (As We Know It)?

As the Eurozone is amid secular stagnation, its old fiscal, monetary and banking challenges are escalating, along with new threats, including the Brexit, demise of Schengen, anti-EU opposition and geopolitical friction. According to Dan Steinbock, Brussels can no longer avoid hard political decisions for or against an integrated Europe, with or without the euro. Since […]

Financial populism in Germany

Financial populism in Germany

photo: fdecomite In May 2015 the European Central Bank published a working paper by U. Bindseil, C. Domnick and J. Zeuner entitled “Critique of accommodating central bank policies and the ‘expropriation of the saver’. A review“. At first sight, this looks like a common paper of literature review. However, in the first line of the Abstract […]

Europe’s Hard Choices: Change or Decline

Europe’s Hard Choices: Change or Decline

photo: Nicolas Raymond Today, Europe is struggling with a series of old and new challenges. Hard choices can no longer be deferred. For half a decade, Europe has struggled with excessive debt (which remains excessively high), fiscal adjustment (which has failed to revive the continent), systemic banking vulnerabilities (which have not been nullified), and competitiveness challenges […]