Alan Auerbach, Yuriy Gorodnichenko, 10 December 2012

It's tough out there for policymakers seeking to stabilise economies, and shocks from abroad aren't helping. This column argues that for countries hit by recession, fiscal stimulus in another country might significantly stimulate demand back at home, softening the worse effects of the current crisis. The evidence suggests that transnational coordination of fiscal policy may well be more valuable than previously thought.

Stefano Scalera, Riccardo Pacini, 07 December 2012

What mechanisms are necessary for the euro to survive? This column argues that recently proposed EU policy might have the answer. Having adopted a roadmap for enhanced economic policy coordination, a growth facility and a framework for enhanced debt issuance, the EU might now stave off the threat of Eurozone breakup. However, the road ahead will certainly be tough, the first crucial stumbling block being the design of a European Redemption Fund.

Charles Wyplosz, 26 November 2012

For the euro to survive, the recession must be halted without piling on more debt. This column argues that the unpalatable conclusion is that public debts must be written down. The massive moral hazard problem this will cause must be dealt with by making sure that public debts will never again be allowed to grow to unsustainable levels. To this end, decentralised US-style fiscal discipline is needed.

Marco Buti, Alessandro Turrini, 12 November 2012

Why aren’t Eurozone imbalances adjusting? This column argues that there is heartening evidence that they are. Labour markets are beginning to be reformed across Europe, thereby increasing countries’ competitiveness. However, the road ahead will surely long and hard; for external adjustment to really work, it is crucial that financial markets start to take a lead supportive role.

Jens Nordvig, 06 November 2012

Conversations about the breakup of the Eurozone are changing. This column argues that an 'avoid breakup at all costs' dogmatism may not be a prudent view. Getting good data may well be difficult, but any arguments about the cost of a Eurozone breakup must be compared to the ongoing cost of the status quo.

Zsolt Darvas, 05 September 2012

The need to rebalance the debts of several Eurozone members is a major root of the current crisis. This column argues that a purely intra-euro rebalancing strategy has its limits and that a weaker euro would help. It urges the European Central Bank to adopt looser monetary policy, which is anyway justified in a highly recessionary environment.

Uri Dadush, Zaahira Wyne, Shimelse Ali, 24 July 2012

The US and the Eurozone are slowly recovering after the bursting of their huge housing bubbles. Yet the hardest-hit states in the US have adjusted more rapidly than the most troubled European economies. This column examines differences between the US and Eurozone monetary unions that can help explain why.

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.

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