It is now seven years since the Greek crisis began. As well as reflecting the chronic deficiencies of its own institutions, the failings in Greece also reflect substantial shortcomings in international institutions. This column argues that it is time for all sides to move on, and proposes a simple debt operation for Greece that can deliver debt sustainability with minimal adjustments to the ESM operating procedures.
EU policies
A recent report by the German Council of Economic Experts argues that the current monetary policy of the ECB is no longer appropriate and is masking structural problems in Eurozone countries. The November 2016 Centre for Macroeconomics and CEPR expert survey invited views on the report. More than three-quarters of respondents disagree that ECB monetary policy should become less accommodating, and respondents also disagree that ECB policy is masking structural reforms. The panel is divided, however, on whether ECB policy is making implementation of structural reforms less likely.
The landscape of the fiscal policy debate has changed over the past decade, with academics and international organisations moving away from an ‘Old View’ of fiscal policy as ineffective. This column uses examples from the US and Europe to highlight the five principles of a ‘New View’ of fiscal policy, which increasingly appreciates that expansionary fiscal policy is effective in a world of persistently low interest rates, low growth, and strong international linkages.
With Britain’s exit from the EU edging ever closer, so too are the negotiations. So far the focus has been on the future position of the UK. Now the time comes for the remaining 27 member states to understand the implications for them, and to establish a strategy for the EU. This column introduces a new eBook aimed at contributing to the extraordinary challenges that lie ahead.
The current refugee crisis poses an enormous challenge not only to European countries, but to the fundaments and achievements of the EU as a whole. This column discusses how this latest crisis differs from the crisis in the early 1990s, and argues there is a drastic need for a new regulatory framework to replace dated coordination attempts. The framework should be based on two pillars: a coordinated policy that secures Europe’s outer borders and deals with asylum claims before refugees have (illegally) crossed into mainland Europe, and a more equitable allocation mechanism.
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