Europe's nations and regions

Jeromin Zettelmeyer, 12 March 2018

Any reform of the Euro Area's fiscal and financial infrastructure must address the balance between member countries' risk-sharing and their market discipline. In this Vox Talk, Jeromin Zettelmeyer discusses the proposals put forward in a new CEPR Policy Insight, "Reconciling risk sharing with market discipline: A constructive approach to euro area reform", that sets out six reforms to improve financial stability within the Euro Area in a way that addresses the deadlock between members' currently polarised interests.

Nauro Campos, Corrado Macchiarelli, 12 March 2018

The concepts of core and periphery remain ubiquitous and elusive in the European integration debate. This column documents the formation and evolution of a core and periphery in EMU, unearthing an increasingly integrated core, an entrenched periphery, and a third set of countries marked by in-and-out movements.  Using a novel measure to capture the probability of a country being classified as peripheral, it reveals that this probability positively correlates with euro membership and flexible product market regulations.

Marco Buti, Björn Döhring, José Leandro, 08 February 2018

The outlook for the euro area economy depends to a large extent on whether the impact of the crisis will turn out to be permanent or transitory. This column attempts to chart out the path ahead, starting from what different narratives of the 'atypical recovery' imply about the further trajectory of GDP and inflation. In view of remaining slack, and barring an exogenous shock or policy mistakes, there is scope for solid GDP growth above potential for some time. The factors that should eventually drive an increase in core inflation are gaining force, but only gradually.  The current supportive policy mix is thus appropriate for the euro area as a whole, but reforms that raise productivity and increase the economy's resilience to shocks should be accelerated.

David Miles, 07 February 2018

Over recent decades houses have become increasingly expensive in the UK, leading to what is routinely described as a ‘housing crisis’. This column assesses whether, over the long term, the UK experience is so unusual and explores the underlying forces at work. Two key elasticities and one technological factor are highlighted as being central to the story and will determine what happens over the next 50 years.

Cristina Fernández, David Martínez Turégano, 07 February 2018

European labour force participation has increased over recent decades, fuelled in large part by increased female labour participation, improvements in education levels, and socioeconomic factors. This column explores whether this trend will continue, or whether we will see a decline similar to that in the US. Results indicate that while Europe’s labour participation is not on the verge of a reversal, targeted policies will need to take over from socio-educational developments in driving further growth.

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