Historically, Greeks have been very good at constructing myths. The rest of the world? Not so great, if the current burst of commentary on the country is anything to go by. Reading the press, one gets the impression of a bunch of lazy Mediterranean scroungers, enjoying one of the highest standards of living in Europe … Read more
This will not be my last look at Scottish independence between now and the September 18 referendum but it will keep us going for now. I urge readers in other parts of the UK not to switch off now. It matters, and it matters rather a lot. Independence is not all about economics but if … Read more
In Part 1 of this series, I outlined some basic economic theory regarding a universal basic income (UBI) and work incentives. By a UBI, I mean an income support policy that provides a set monthly benefit to every citizen. A UBI, as I define it, would to everyone, regardless of income, wealth, or employment status. … Read more
At the root of the Euro crisis was not only a sovereign debt crisis, but also a balance-of-payments crisis. A multi-faceted approach is required to restore the euro-area economy back to a sustainable growth path. * The euro-area crisis has often been characterised as a sovereign debt crisis. Indeed, it was triggered by a sudden … Read more
Summary: Drawing mainly on the recent EBA impact assessment, this VOX piece examines the implementation of the Liquidity Coverage Ratio (LCR) in the EU, which is due by December 31st, 2014. The recalibration of the LCR in January 2013 watered down the standard significantly. Nevertheless, banks in the EU still feature substantial liquidity risk exposure. To … Read more
European policymakers are trying to sway the vote in Greece. From the Financial Times: Senior European leaders are attempting to turn Greece’s repeat national election next month into a referendum on the country’s membership of the euro, a high-stakes political gamble that officials believe can win back voters disillusioned by the tough bailout conditions but eager to … Read more
Everywhere you look, it seems, people are talking about a Universal Basic Income (UBI)—a monthly cash benefit paid to every citizen that would replace the existing means-tested welfare system. Supporters maintain that a UBI would not only provide income support to people in need, but would also increase work incentives. That is because, unlike the … Read more
There has been lot’s of debate in the press and in academic circles over the last week or so about whether Italy’s latest contraction constitutes a triple dip recession or simply a continuation of what’s been going on over many many years. This is an interesting theoretical nicety, but in fact what is happening in … Read more
If this week’s economics news is positive then that is good. But if it’s bad then that’s even better, since there is more potential for it to improve next week, and if it doesn’t, well that’s doubly better since there will be even more reason for central banks to step in and push up asset … Read more
By Rahul Anand and Volodymyr Tulin India, after witnessing spectacular growth averaging above 9 percent over the past decade, has started to slow in the last few years. The slump in infrastructure and corporate investment has been the single biggest contributor to India’s recent growth slowdown. India’s investment growth, averaging above 12 percent during the last decade fell … Read more