Maurizio Bovi, 23 July 2012

Is the crisis ‘decoupling’ the Greeks from Greece? Using EU survey data, this column shows that before the global crisis, Greeks’s assements of their own economic stance was in line with that of their country as a whole. But during the recent crisis years most Greeks thought they were doing better than average. This column explains this puzzle using insights from psychology.

Tito Boeri, 20 July 2012

Solving the EZ crisis will almost certainly involve some financial transfers in exchange for some loss of sovereignty. This column suggests a guiding principle for which policies should be under EZ control. Transfers of authority to supranational bodies must make a no-further-bailout clause credible.

Nicholas Crafts, 27 June 2012

Renewed calls are being made for a Marshall Plan for Greece. Yet this column argues that few people seem to understand what the Marshall Plan actually was. It suggests that repeating the 1940s’ recipe would mean a ‘structural adjustment programme’ targeting supply-side reforms and, as such, would probably appeal to Greeks even less than it would to Germans.

DeLisle Worrell, 23 June 2012

If Greece leaves the euro, it can devalue its currency and start an export-led recovery – or so the popular argument goes. This column provides some hands-on insights from another small open economy, Barbados. It argues that for these economies that rely heavily on imports, devaluation will never be a viable option.

Giancarlo Corsetti, 23 June 2012

This eCollection summarizes the views of leading economists about the path and content of budget adjustment that can help advance economies to move out of the crisis, and resolve the policy impasse that is unsettling the Eurozone.

Daniel Gros, Dirk Schoenmaker, 06 June 2012

In Greece, the problem is an insolvent government bringing down the banks. In Spain, the problem is now insolvent banks bringing down the government. This column argues that despite their differences, the potential costs to the rest of Europe mean that both problems require a European solution.

Marco Annunziata, 01 June 2012

There was a time when Greek exit from the Eurozone seemed implausible – now the prospect is so openly discussed that it even has its own word: Grexit. But amid the media frenzy, we should remind ourselves that single-country breakaway is not the same as a Eurozone breakup. This column discusses the steps to ensure that the former does not imply the latter. It urges leaders to take them quickly.

Avinash Persaud, 30 May 2012

Should Greece leave the Eurozone? This column argues that aggressive restructuring of Greek debt within the Eurozone, rather than departure, is the best option.

Daniel Gros, 29 May 2012

If Greece leaves the Eurozone, many expect that it that will be forced to default. This column argues that need not be the case.

Mickey Levy, Peter Kretzmer, 16 May 2012

Greece’s economic and financial crisis is quickly deteriorating and there is no strategy – or even a coalition government – to figure out what to do next. This column looks at the lessons from Argentina’s default in 2001 and argues that Greece’s road to necessary economic reforms, fiscal sustainability and recovery may be even more daunting.

Olivier Blanchard, 23 March 2012

The Greek package has cheered up markets. In this column, the IMF’s Chief Economist Olivier Blanchard argues that the programme deals squarely with the two most fundamental issues facing Greece – high debt and low competitiveness. And it is also fair, asking for sacrifices of both Greece and its creditors.

Jacob Kirkegaard, 21 March 2012

Last week’s historical restructuring of Greek debt appears to have gone smoothly. This column argues that appearances may be deceptive.

Miranda Xafa, 18 March 2012

With Greece in deep recession for the fifth year running, several prominent observers have been calling on it to exit the Eurozone. This column argues this would not help Greece’s economy recover faster from its deep recession. Greece will still be the most heavily regulated country in the OECD and returning to a drachma would only add to the debt burden.

Alain De Crombrugghe, Eric De Keuleneer, 15 March 2012

Even with the latest bailout and debt restructuring, Greek debt is still projected to be 120% of GDP by 2020. With no access to foreign markets, Greece will have to fund any future deficits by calling on more funds from foreign governments or international institutions. This column suggests a novel solution: force ordinary Greeks to save some of their earnings by purchasing government bonds.

Paolo Manasse, 10 March 2012

A day after the largest restructuring of government debt in history, this column provides two lessons to take away from the noise.

Jeromin Zettelmeyer, Mitu Gulati, 05 March 2012

One of the most interesting questions arising from the ongoing Greek debt restructuring is what it implies about the feasibility of voluntary debt restructurings. Indeed, why would anyone voluntarily take a debt-exchange offer that promises a large reduction in repayments? This column argues creditors might feel safer with new debt instruments issued under English law than with old Greek-law regulated ones.

Jacob Kirkegaard, 01 March 2012

Brinkmanship has produced an early-morning deal in Europe to extend a new lifeline to Greece and clear the way for the biggest sovereign bond restructuring in history. This column takes a detailed look at the EU deal, the ongoing brinkmanship between the Eurozone and the IMF, and the general focus on austerity.

Jakob de Haan, Mark Mink, 23 February 2012

Since 2010, Eurozone countries have engaged in unprecedented rescue operations to avoid contagion from a potential Greek sovereign default. This column argues that news about Greek public finances does not affect Eurozone bank stock prices, while news about a Greek bailout does. This suggests that markets consider news about a Greek bailout to be a signal of Eurozone countries’ willingness to use public funds to combat the financial crisis.

Willem Buiter, 20 February 2012

Willem Buiter talks to Viv Davies about Greece and the Eurozone. Buiter believes that Greece’s public debt should be written off, it’s banks recapitalised and that the country be provided with sufficient conditional support to grow its economy. They discuss the LTROs and the risks of loss of control over the aggregate size of the balance sheet and potential national central bank insolvencies. Buiter suggests that now is not the time for self-righteousness amongst European policymakers. The interview was recorded on 17 Feb 2012. [Also read the transcript]

Luigi Guiso, Helios Herrera, Massimo Morelli, 25 January 2012

What good might come from Europe’s crisis? Profligate governments in Italy and Greece, while pandering to the masses, have left their countries with crippling debt. This column draws parallels with Latin America and argues that the current hardship may sound a death knell for populism in southern Europe, as it has elsewhere.

Pages

Events

CEPR Policy Research