Financial crises and rising inflation: the role of monetary policy

While the global financial crisis is spreading fast, policy makers (supervisors, regulators, central bankers, finance ministers) are desperately trying to cope with a situation in many ways unprecedented. After years of strong and steady economic and credit expansion, all of a sudden financial markets virtually ceased to function. As if this wasn’t enough, policymakers are […]

Low fertility and low women labour force participation: a delay syndrome?

In most economically advanced countries, fertility rates (number of children per woman) have been on a downward path in the last two decades. This is a concern particularly in Europe, where the ageing process implies that pay-as-you-go pension systems (predominant in the Old Continent) become financially unsustainable. Not all countries in Europe are alike, however: […]

The dark side of monetary expansions

In cooperation with Ignazio Angeloni After some short-lived optimism around end-summer (stock market recovered and spreads narrowed, suggesting light at the end of the tunnel), financial indicators have turned negative again. The prevailing sentiment is that the crisis will take a good deal of time to be resolved. In the meantime, confidence indicators in the […]

Labor market reform in Europe: where do we stand?

Labor markets have been at the core of Europe’s policy agenda for many years, particularly after the introduction of the euro. When exchange rates can no longer be adjusted, flexible labor markets are needed because they help face increasing competitive pressures and absorb external shocks associated with the globalization process. Europe is trying to respond […]