Aerdt Houben, Janko Cizel, Jon Frost, Peter Wierts, 05 November 2019

Macroprudential policies are being implemented around the globe. A key question is whether these policies prompt substitution toward the non-bank financial sector. This column presents compelling evidence of such ‘waterbed effects’ after macroprudential policy action. Substitution towards non-bank credit is stronger when policy measures applied to banks are binding and are implemented in countries with well-developed financial markets. While systemic risks may nonetheless decline, waterbed effects highlight the importance of developing macroprudential policies beyond banking. 

Thorsten Beck, Geoffrey Underhill, 01 March 2017

The institutions and even the very idea of the EU are under fire, with feelings of disenfranchisement among large parts of the population driving support for populist movements across the continent. This column introduces a new eBook that brings together analyses of this multidimensional crisis and of the way out - the future of the European Union. A worryingly common message is that muddling through will not be enough to save the EU as a political project.

Stefan Tangermann, 10 November 2011

As Europe battles a life-threatening crisis, the European Commission has found time to discuss the much-maligned Common Agricultural Policy. This column, by the former OECD Director for Trade and Agriculture, argues that far from seizing the opportunity to use CAP to benefit fiscal discipline, policymakers are maintaining an outdated and inefficient system for the financial benefit of farmers.

Hylke Vandenbussche, Christian Viegelahn, 04 September 2011

Has there been a protectionist backlash by the EU since the outbreak of the global crisis? This column, part of a collection of four columns on trade responses to the crisis, finds that thus far this has not been the case. It does not find any major trade policy changes during the crisis compared with the pre-crisis path.

Assaf Razin, Jackline Wahba, 04 March 2011

Do immigrants just move for the benefit systems? This column argues that the effect of the welfare state on immigration and its composition depends on whether the destination country's migration policy is “free” or “managed”, and on whether the source country is developed or developing.

Anna Iara, Guntram Wolff, 20 January 2011

The Eurozone crisis has whetted the appetite for economic governance reform in the EU, with one high-profile proposal aiming to strengthen national fiscal frameworks. With a unique data set, this column shows that stronger fiscal rules in Eurozone member states reduce sovereign risk, especially in times of high uncertainty. If followed, these rules could reduce sovereign yield spreads by up to 100 basis points.

Nicolas Véron, 19 January 2011

With emerging and oil-rich economies increasingly investing in European companies, some have proposed modifying the EU’s stance on foreign investment for reasons of geopolitical security. But this often is a guise for protecting narrow political interests, particularly as unemployment rises. This column calls for a clear and consistent legal framework to avoid the dangerous extremes of complete closure and complete, unchecked openness.

Richard Baldwin, Daniel Gros, Stefano Micossi, Pier Carlo Padoan, Giuliano Amato, 07 December 2010

The unfolding crisis in Europe has focused policymakers’ attention on reducing debt-to-GDP ratios. This open letter to the President of the European Council argues that, while the top part of that fraction is important, the most critical factor in the long run is the restoration of GDP growth – offering several policy recommendations to this end.

Vladimir Gligorov, Michael Landesmann, 16 March 2009

Eastern European countries have high external imbalances that constrain their policy responses to the crisis. This column says the EU should provide support through both fiscal and financial measures. Otherwise, it risks a much deeper and prolonged economic crisis in both new and potential member states that will have negative effects on the whole of Europe.

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