News Archive

Bank notes

Covid-19: Has the Time Come for Mainstream Macroeconomics to Rehabilitate Money Printing?

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Policy Brief
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The expenditure necessary to avoid the Covid-19 health crisis turning into a long-lasting deep recession is enormous and raises the issue of how it should be financed: through new debt, or monetization? Monetization - defined as the financing of public expenditure through money creation by the central bank without being reimbursed by the government - has long been rejected by mainstream macroeconomics. Axelle Arquié (EconPol Europe, CEPII), Jérôme Héricourt (EconPol Europe, Université de Lille & CEPII) and Fabien Tripier (EconPol Europe, Université Paris-Saclay (Evry) & CEPII) analy

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Labor Productivity in State-Owned Enterprises

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Working Paper
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Between 2013 and 2015, in the aftermath of the global financial crisis, the Portuguese government revoked four holidays for public and private employees - but the revocation seems to have served little economic purpose and been no more than a ceremonial gesture. In this paper, authors António Afonso (EconPol Europe, Universidade de Lisboa; REM/UECE), Maria João Guedes (Universidade de Lisboa; Advance/CSG), Pankaj C.

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ESM Liquidity Assistance Versus Corona Bonds

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EconPol Policy Briefs
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In the search for the right European financing instruments, the purported advantages of corona bonds over the ESM are meagre to non-existent, says Friedrich Heinemann (EconPol Europe, ZEW): the challenge we face is to contain the spread of COVID-19 while stabilising the economy and ensuring eurozone states have sufficient liquidity, and the ESM is a suitable tool for pursuing these ends.

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EU Solidarity in Exceptional Times: Corona Transfers Instead of Coronabonds

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EconPol Opinion
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Does the coronavirus crisis call for solidarity within the EU, or within the euro area: Daniel Gros (EconPol Europe, CEPS) argues that being hit by an unforeseen epidemic has nothing to do with euro area membership and the present situation is a case which requires solidarity at EU level. And, he says, there's a plausible and simple way to organise a real expression of EU solidarity without engaging in any large-scale financial transactions.

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