Global Economic News and Analysis
by Paul De Grauwe and Yuemei Ji Voxeu.org published this article 14 June 2013 The monetary-fiscal policy connection is under scrutiny by the German Constitutional Court in the context of the ECB’s OMT bond-buying programme. This column argues that most analyses are deeply flawed by the misapplication of private-company default principles to the central bank. …
Continue reading “Fiscal Implications of the ECB’s Bond-buying Program”
by Paul De Grauwe and Yuemei Ji, Voxeu.org Eurozone policy seems driven by market sentiment. This column argues that fear and panic led to excessive, and possibly self-defeating, austerity in the south while failing to induce offsetting stimulus in the north. The resulting deflation bias produced the double-dip recession and perhaps more dire consequences. As …
Continue reading “Panic-driven Austerity in the Eurozone and Its Implications”