The view that deficits and higher public debt can be beneficial has received an important boost through the recent presidential address of Prof. Olivier Blanchard at the American Economic Association, entitled: “Public debt and low interest rates”. A new editorial by Daniel Gros.
The ECB announces the end of the extraordinary monetary policies: the markets do not make a move, as does the spread. What if the quantitative easing has not been a “protective shield” for Italy then? What if it only contributed to change the composition of the Italian public debt, with only temporary effects on the risk premium? Doubts and non-mainstream clues
With elections only a couple of weeks ahead, the tendency to bash the euro (and Europe) seems to have greatly diminished among all parties. But not bashing the euro and its rules is not enough, says Daniel Gros
In the identification between single currency and neoliberal policies, that’s where the anti-Euro movement as well the advocates of the status quo are splashing around. Both, armed against one other, pretend not to see that the problem is not the single currency itself, but the intellectual climate that is now prevailing in Europe. Here are some ideas to finally change direction without blowing up the whole continent, taken from Francesco Saraceno’s preface to the Italian edition of Martin Sandbu’s book “Europe’s Orphan”.
According to a widespread belief, banks buying bonds of their own government can have a positive impact on the market, especially in order to stabilize a crisis. Daniel Gros argues, on the contrary, that this is not the case
Debt recovery and growth in the medium term are the objectives that should be pivotal for the Italian government, according to this policy brief by the LUISS School of European Political Economy
Our country must grow up and can not continue to lay the responsibility of its low growth on others. Some suggestions on the subject of banks and public debt by Stefano Micossi