Karl Whelan, 25 February 2012

Europe’s Fiscal Compact is being widely sold as the essence of prudent fiscal management. But this column argues that the rules in the Fiscal Compact severely restrict a country’s ability to use fiscal policy to stabilise its economy and will often require debt levels far below those considered sensible. The rules should be changed before they become a straightjacket.

Jan van Ours, Anne Gielen, 13 February 2012

Much research has documented that unemployment makes people unhappy. But does unhappiness spur the unemployed to look harder for jobs? And if so, why do governments need to help them find work with active labour market policies? CEPR DP8842 finds that the unhappiest of the unemployed do search harder for jobs, but don’t find them faster – suggesting that even the most motivated jobseekers could benefit from activation policies.

Jacob Kirkegaard, 06 February 2012

Europe’s new fiscal compact is seen by some as the death of Keynesian government spending. This column argues that such analysis is simply wrong. It says that there is still room for government spending in extreme situations, but that there are now more safeguards to maintain stability, reduce contagion, and placate German taxpayers.

Mickey Levy, 19 January 2012

The Eurozone crisis rolls on. This column argues that Europe’s leaders must do more to address the gap in competitiveness between the lean north and the bloated south. The answer is as simple to say as it is difficult to do - follow Germany’s example and keep wages low.

Guido Tabellini, 29 November 2011

Last week’s failed auction of German debt showed that none would be immune from a blow-up of the Eurozone, and that normal central banks act as lenders of last resort to their governments. This column argues that unless the ECB starts to care explicitly about financial stability, the troubles will only get worse.

Nicolas Véron, 26 November 2011

When US President Barack Obama met German Chancellor Angela Merkel earlier this month, his advice was reportedly, “I guess you guys have to be creative here”. This column wholeheartedly agrees – and lays out where that creativity is sorely needed.

John Muellbauer, 25 November 2011

For months economists have been arguing that Germany holds the key to ending the Eurozone crisis. Should it relax its anti-inflation stance and allow the ECB to inflate away sovereign debt? Or should it write a cheque of its own to the EFSF? Neither, says this column. There is a simple solution, if only Eurozone leaders can see it. Eurobonds are the answer – but with conditions.

Tabea Bucher-Koenen, Annamaria Lusardi, 19 November 2011

We live in financially compromised times – but how many people understand them? This is especially problematic when it comes to people’s own finances. This column presents findings from a study in Germany that does not make for comfortable reading.

Hans-Werner Sinn, 18 November 2011

The first major crisis in the era of independent central banks is severely testing that independence – nowhere more so than the Eurozone. This column argues that the ECB is monetising the sovereign debt – a view widely held in Germany. It argues that the ECB is the Eurozone’s economic government with the power to enforce comprehensive rescue measures, up to and including a fiscal transfer union.

Christina Felfe, Michael Lechner, Andreas Steinmayr, 04 November 2011

Does all work and no play make Jack a dumb boy as well as a dull one? This column presents one of the first empirical studies on the effects of sporting activity on the cognitive ability of children in Germany.

Michael Burda, Jennifer Hunt, 02 November 2011

Jobs and the lack of them are top of the agenda for policymakers and increasingly groups of protestors gathered in the financial districts of New York, London, and elsewhere. Unemployment in these countries is in danger of reaching 10%. In Germany, however, unemployment is below 7%. Some hail it as a miracle. This column finds a scientific – and far less inspiring – explanation.

Angelo Baglioni, Umberto Cherubini, 12 October 2011

One of the main objections to the idea of euro bonds is that Germany would be guaranteeing the debt of Greece, among other cross-country subsidies between the core and the periphery. This column argues that this need not be the case.

Willem Buiter, Ebrahim Rahbari, Juergen Michels, 06 September 2011

The Eurozone money transfer system, TARGET2, has huge imbalances whose meaning is subject to much debate. This column introduces a new CEPR Policy Insight by Citigroup Chief Economist Willem Buiter and co-authors that sorts out the issues. It argues that the imbalances show some banks can’t fund themselves without public support. This is a wakeup call – Eurozone banking systems must rapidly be put on sound footing.

Willem Buiter, Ebrahim Rahbari, Juergen Michels, 06 September 2011

The Eurozone money transfer system, TARGET2, has huge imbalances whose meaning is subject to much debate. This Policy Insight by Citigroup Chief Economist Willem Buiter and co-authors argues that the imbalances show some banks can’t fund themselves without public support.

Francesco Giavazzi, Alberto Alesina, 01 September 2011

One major problem with the Eurozone as a currency area is that its economies are not in sync. With growth in Germany now slowing, this column argues that this could be the blessing the ECB has been praying for.

Daniel Gros, 24 August 2011

Eurobonds are being touted as the silver bullet to resolve the Eurozone crisis. This column argues that the Eurobonds proposal fails on legal, political, and economic grounds. It says that, whatever the variant, Eurobonds only make sense in a political union—and given the vast differences in national political systems and their quality of governance, any political union created on paper will not work in practice.

Anna Ivanova, Sebastian Weber, 16 August 2011

As governments continue their planned spending cuts, this column argues that the short-term effects on growth could be large. But based on its projections for 20 large economies, it says that the international spillovers are likely to be limited – except perhaps for small, open economies.

Fabian Bornhorst, Anna Ivanova, 15 August 2011

The German current-account surplus peaked at 7½% of GDP in 2007, coinciding with the emergence of imbalances elsewhere. This column argues that these large imbalances in large part reflected a booming world economy rather than structural factors. It adds that any sustainable rebalancing would require an ambitious reform agenda aimed at raising Germany’s potential growth with greater reliance on domestic demand.

Hélène Poirson, Sebastian Weber, 15 August 2011

Europe needs economic growth. Can Germany provide the needed boost? This column argues that such hopes may be in vain. Germany’s role as an independent, short-term engine of growth for Europe is likely to remain limited for the foreseeable future—at least until its policies change.

Hans-Werner Sinn, 02 August 2011

With the fire in the Eurozone still burning, this column asks how it started. It highlights three phases in capital flows since the introduction of the euro. First, capital flowed out of Germany to the booming periphery countries. Second, as the crisis hit, TARGET2 caused a forced capital export from the Bundesbank . Third, public capital flows, which again rely on money from Germany, have only just begun.

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