Advertisement

(Monetary) Policy Options for the Euro Area: A Compendium to the Crisis

  • Sascha Bützer
Chapter

Abstract

Nine years after Lehman, the euro area remains mired in stagnation which stands in stark contrast to the economic recovery in the US or the UK. This chapter takes a look at the macroeconomic policies that have led to this outcome within the particular institutional setup of the euro area and discusses feasible ways forward. It argues that procyclical fiscal tightening has exacerbated the crisis and, given constraints to monetary policy and limits to what structural reforms can deliver, increased the likelihood of becoming stuck in an equilibrium characterized by low growth and low inflation which has contributed to rising anti-European sentiment. Since the required change of direction does not seem imminent, the outright creation of broad money would provide an effective tool to salvage stable prices, growth, and employment. If done diligently, such a monetary policy operation would be squarely within the ECB’s remit without compromising its independence or credibility.

Keywords

EMU governance Euro area Fiscal policy Helicopter money Monetary policy Optimum currency area 

JEL Classification:

E02 E5 E6 F33 F45 F55 

Notes

Acknowledgements

The author Sascha Bützer thanks Frank Heinemann, Gerhard Illing, Benedikt Kolb, Tobias Krahnke, Chris Sims, Livio Stracca, Steffen Strodthoff, and Robert Unger for useful suggestions and fruitful discussions that helped shape this chapter.

References

  1. Adler, G., Castro, P., & Tovar, C. E. (2016). Does Central Bank capital matter for monetary policy? Open Economies Review, 27(1), 183–205.CrossRefGoogle Scholar
  2. Agarwal, R., & Kimball, M. (2015). Breaking Through the Zero Lower Bound. IMF Working Papers 15/224.Google Scholar
  3. Altavilla, C., Giannone, D., & Lenza, M. (2014). The Financial and Macroeconomic Effects of OMT Announcements. Working Paper Series 1707, European Central Bank.Google Scholar
  4. Antolin-Diaz, J. (2014). Deflation Risk and the ECB’s Communication Strategy. Fulcrum Research Papers, February 4.Google Scholar
  5. Arbatli, E., Botman, D., Clinton, K., Cova, P., Gaspar, V., Jakab, Z., et al. (2016). Reflating Japan: Time to Get Unconventional? IMF Working Papers 16/157.Google Scholar
  6. Auerbach, A. J., & Gorodnichenko, Y. (2012). Measuring the output responses to fiscal policy. American Economic Journal: Economic Policy, 4(2), 1–27.Google Scholar
  7. Bachmann, R., & Sims, E. (2012). Confidence and the transmission of government spending shocks. Journal of Monetary Economics, 59(3), 235–249.CrossRefGoogle Scholar
  8. Baldwin, R., Beck, T., Bénassy-Quéré, A., Blanchard, O., Corsetti, G., de Grauwe, P., et al. (2015). Rebooting the Eurozone: Step 1 - agreeing a crisis narrative. CEPR Policy Insight, (85).Google Scholar
  9. Ball, L. (2012). Ben Bernanke and the zero bound. Contemporary Economic Policy, 34(1), 7–20.CrossRefGoogle Scholar
  10. Barro, R. (1974). Are government bonds net wealth? Journal of Political Economy, 82(6), 1095–1117.CrossRefGoogle Scholar
  11. Barro, R., & Gordon, D. (1983). Rules, discretion and reputation in a model of monetary policy. Journal of Monetary Economics, 12(1), 101–121.CrossRefGoogle Scholar
  12. Bénassy-Quéré, A., Ragot, X., & Wolff, G. (2016). Which fiscal union for the euro area? Policy Contributions 12893, Bruegel.Google Scholar
  13. Benecka, S., Holub, T., Kadlcakova, N., & Kubicova, I. (2012). Does Central Bank Financial Strength Natter for Inflation? An Empirical Analysis. Working Papers 2012/03, Czech National Bank.Google Scholar
  14. Bernanke, B. (2002). Deflation: Making sure “it” doesn’t happen here. Remarks Before the National Economists Club, Washington, DC, November 21, 2002.Google Scholar
  15. Bindseil, U., Manzanares, A., & Weller, B. (2004). The Role of Central Bank Capital Revisited. Working Paper Series 0392, European Central Bank.Google Scholar
  16. Bini Smaghi, L. (2014). Why the opponents of QE have failed to make their case. Financial Times, September 02.Google Scholar
  17. BIS. (2009). Issues in the governance of Central Banks. A Report from the Central Bank Governance Group, Chair: Guillermo Ortiz, Governor of the Bank of Mexico.Google Scholar
  18. Blanchard, O., Cerutti, E., & Summers, L. (2015). Inflation and Activity - Two Explorations and Their Monetary Policy Implications. NBER Working Papers 21726.Google Scholar
  19. Blanchard, O., & Leigh, D. (2013). Growth forecast errors and fiscal multipliers. American Economic Review, 103(3), 117–120.CrossRefGoogle Scholar
  20. Blanchard, O., Mauro, P., & Acalin, J. (2016). The case for growth-indexed bonds in advanced economies today. Policy Briefs PB16-2, Peterson Institute for International Economics.Google Scholar
  21. Blyth, M., & Lonergan, E. (2014). Print less but transfer more. Foreign Affairs, September/October Issue.Google Scholar
  22. Borio, C., & Disyatat, P. (2009). Unconventional Monetary Policies: An Appraisal. BIS Working Papers 292, Bank for International Settlements.Google Scholar
  23. Borio, C., Disyatat, P., & Zabai, A. (2016). Helicopter money: The illusion of a free lunch. VoxEU.org, May 24, http://voxeu.org/article/helicopter-money-illusion-free-lunch. Accessed 01 June 2016.
  24. Born, B., Müller, G., & Pfeifer, J. (2015). Does Austerity Pay Off? CEPR Discussion Papers 10425, Center for Economic and Policy Research.Google Scholar
  25. Brunnermeier, M., Garicano, L., Lane, P., Pagano, M., Reis, R., Santos, T., et al. (2016). The Sovereign-Bank Diabolic Loop and ESBies. NBER Working Papers 21993.Google Scholar
  26. Buiter, W. (2003). Ten commandments for a fiscal rule in the E(M)U. Oxford Review of Economic Policy, 19(1), 84–99.CrossRefGoogle Scholar
  27. Buiter, W. (2014). The simple analytics of helicopter money: Why it works - always. Economics - The Open-Access, Open-Assessment E-Journal, 8, 1–51.Google Scholar
  28. Buiter, W., & Rahbari, E. (2012). Looking into the deep pockets of the ECB. Citi: Global Economics View, February 27.Google Scholar
  29. Bullard, J. (2010). Seven faces of “The Peril”. Federal Reserve Bank of St. Louis Review, Sep, 339–352.Google Scholar
  30. Bunea, D., Karakitsos, P., Merriman, N., & Studener, W. (2016). Profit Distribution and Loss Coverage Rules for Central Banks. Occasional Paper Series 169, European Central Bank.Google Scholar
  31. Caballero, R., Farhi, E., & Gourinchas, P.-O. (2015). Global Imbalances and Currency Wars at the ZLB. NBER Working Papers 21670.Google Scholar
  32. Caballero, R., Farhi, E., & Gourinchas, P.-O. (2016). Safe asset scarcity and aggregate demand. American Economic Review: Papers & Proceedings, 106(5), 513–518.CrossRefGoogle Scholar
  33. Carnot, N., & de Castro, F. (2015). The Discretionary Fiscal Effort: An Assessment of Fiscal Policy and Its Output Effect. Economic Papers 543, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.Google Scholar
  34. Carpenter, S., Ihrig, J., Klee, E., Quinn, D., & Boote, A. (2013). The Federal Reserve’s balance sheet and earnings: A primer and projections. Finance and Economics Discussion Series 2013-01, Board of Governors of the Federal Reserve System.Google Scholar
  35. Chudik, A., Mohaddes, K., Pesaran, M. H., & Raissi, M. (2015). Is There a Debt-Threshold Effect on Output Growth? IMF Working Papers 15/197.Google Scholar
  36. Coenen, G., & Schmidt, S. (2016). The role of the ECB’s asset purchases in preventing a potential de-anchoring of longer-term inflation expectations. ECB Research Bulletin. 25 July 2016, European Central Bank.Google Scholar
  37. Constancio, V. (2011). Challenges to Monetary Policy in 2012. Speech at the 26th International Conference on Interest Rates. Frankfurt am Main, December 08.Google Scholar
  38. Corsetti, G., Higgins, M., & Pesenti, P. (2016). Policies and institutions for managing the aggregate macroeconomic stance of the Eurozone. In R. Baldwin & F. Giavazzi (Eds.), How to fix the Eurozone: Views of leading economists. Centre for Economic Policy Research: A VoxEU.org Book.
  39. Cournéde, B., Goujard, A., & Pina, Á. (2014). Reconciling fiscal consolidation with growth and equity. OECD Journal: Economic Studies, 2013(1), 7–89.Google Scholar
  40. Darvas, Z. (2011). A tale of three countries: Recovery after banking crises. Bruegel Policy Contribution (2011/19).Google Scholar
  41. de Bromhead, A., Eichengreen, B., & O’Rourke, K. (2012). Right-Wing Political Extremism in the Great Depression. NBER Working Papers 17871.Google Scholar
  42. De Grauwe, P. (2011) The European Central Bank: Lender of Last Resort in the Government Bond Markets? CESifo Working Paper Series 3569.Google Scholar
  43. de la Dehesa, G. (2011). Eurozone design and management failures. VoxEU.org, May 18, http://www.voxeu.org/article/eurozone-design-and-management-failures. Accessed 01 May 2016.
  44. Del Negro, M., & Sims, C. (2015). When does a Central Bank’s balance sheet require fiscal support? Journal of Monetary Economics, 73, 1–19.CrossRefGoogle Scholar
  45. DeLong, J. B. (2015). Depression’s advocates. Project Syndicate, July 24, https://www.project-syndicate.org/commentary/europe-repeating-mistakes-great-depression-by-j--bradford-delong-2015-07. Accessed 01 May 2016.
  46. DeLong, J. B., & Summers, L. (2012). Fiscal policy in a depressed economy. Brookings Papers on Economic Activity, 44(Spring), 233–297.CrossRefGoogle Scholar
  47. Doepke, M., & Schneider, M. (2006). Inflation and the redistribution of nominal wealth. Journal of Political Economy, 114(6), 1069–1097.CrossRefGoogle Scholar
  48. Draghi, M. (2012). Introductory statement to the press conference (with Q&A). Frankfurt am Main, September 06, http://www.ecb.europa.eu/press/pressconf/2012/html/is120906.en.html. Accessed 01 June 2016.
  49. Draghi, M. (2016). Speech at the annual meeting of the Asian Development Bank. Frankfurt am Main, May 02, https://www.ecb.europa.eu/press/key/date/2016/html/sp160502.en.html. Accessed 01 June 2016.
  50. Dullien, S., & Guerot, U. (2012). The long shadow of ordoliberalism: Germany’s approach to the euro crisis. ECFR Policy Brief.Google Scholar
  51. EC. (2015). Public opinion in the European Union. Standard Eurobarometer, 83.Google Scholar
  52. ECB. (2012). Box 2: The relationship between base money, broad money, and risks to price stability. ECB Monthly Bulletin, May 2012.Google Scholar
  53. ECB. (2015). Box 2: What is behind the low investment in the euro area? Responses from a survey of large euro area firms. ECB Economic Bulletin, 8/2015.Google Scholar
  54. ECB. (2016). ECB annual report 2015. Frankfurt am Main, April 2016.Google Scholar
  55. Egert, B. (2015). Public debt, economic growth and nonlinear effects: Myth or reality? Journal of Macroeconomics, 43, 226–238.CrossRefGoogle Scholar
  56. Eggertsson, G., Ferrero, A., & Raffo, A. (2014). Can structural reforms help Europe? Journal of Monetary Economics, 61, 2–22.CrossRefGoogle Scholar
  57. Eggertsson, G., & Krugman, P. (2012). Debt, deleveraging, and the liquidity trap: A Fisher-Minsky-Koo approach. The Quarterly Journal of Economics, 127(3), 1469–1513.CrossRefGoogle Scholar
  58. Eichengreen, B., & Wyplosz, C. (2016). How the Euro crisis was successfully resolved. VoxEU.org, February 12, http://www.voxeu.org/article/how-euro-crisis-was-successfully-resolved. Accessed 01 May 2016.
  59. Eichengreen, B. P., & Evans, G. (2015). Structural reform indexed loans for Greece. VoxEU.org, August 31, http://www.voxeu.org/article/breaking-greek-debt-impasse/. Accessed 01 May 2016.
  60. Estrada, A., Gali, J., & Lopez-Salido, D. (2013). Patterns of Convergence and Divergence in the Euro Area. NBER Working Papers 19561.Google Scholar
  61. EU. (2010). Consolidated versions of the treaty on European Union and the treaty on the functioning of the European Union. Official Journal of the European Union, 53(2010/C 83/01).Google Scholar
  62. Eurobarometer. (2016a). European Youth in 2016 - Special Eurobarometer of the European Parliament. Public Opinion Monitoring Unit, European Parliamentary Research Service.Google Scholar
  63. Evans-Pritchard, A. (2014). Tim Geithner reveals in the raw how Europe’s leaders tried to commit financial suicide. The Telegraph, November 12.Google Scholar
  64. Eyraud, L., & Wu, T. (2015). Playing by the Rules; Reforming Fiscal Governance in Europe. IMF Working Papers 15/67.Google Scholar
  65. Fatas, A., & Summers, L. (2015). The Permanent Effects of Fiscal Consolidations. CEPR Discussion Papers 10902, Center for Economic and Policy Research.Google Scholar
  66. Fawley, B., & Neely, C. (2013). Four stories of quantitative easing. Federal Reserve Bank of St. Louis Review, 95(1), 51–88.Google Scholar
  67. Feldstein, M. (1992). The case against EMU. The Economist, June 13.Google Scholar
  68. Feldstein, M. (2012). The failure of the Euro. Foreign Affairs, January/February Issue.Google Scholar
  69. Fratzscher, M. (2014). Germany’s four neins. Project Syndicate, November 21, https://www.project-syndicate.org/commentary/germany-wrong-on-european-policy-by-marcel-fratzscher-2014-11?barrier=true. Accessed 01 May 2016.
  70. Friedman, M. (1969). The optimum quantity of money: And other essays. Chicago: Aldine Pub. Co.Google Scholar
  71. Galí, J. (2014). The Effects of a Money-Financed Fiscal Stimulus. CEPR Discussion Papers 10165, Center for Economic and Policy Research.Google Scholar
  72. Galí, J. (2015). Hysteresis and the European Unemployment Problem Revisited. NBER Working Papers 21430.Google Scholar
  73. Galí, J., López-Salido, J. D., & Vallós, J. (2007). Understanding the effects of government spending on consumption. Journal of the European Economic Association, 5(1), 227–270.CrossRefGoogle Scholar
  74. Ganelli, G., & Tervala, J. (2016). The Welfare Multiplier of Public Infrastructure Investment. IMF Working Papers 16/40.Google Scholar
  75. German Council of Economic Experts. (2014). Annual economic report 2015/16: “Focus on Future Viability”, Chapter four: Euro area: Slow down bond purchases, speed up reforms.Google Scholar
  76. Ghosh, A., Kim, J., Mendoza, E., Ostry, J., & Qureshi, M. (2013). Fiscal fatigue, fiscal space and debt sustainability in advanced economies. The Economic Journal, 123(566), F4–F30.CrossRefGoogle Scholar
  77. Gillespie, P. (2016). Janet Yellen: Helicopter money is an option in extreme situations. CNN Money, June 16.Google Scholar
  78. Gray, S. (2011). Central Bank Balances and Reserve Requirements. IMF Working Papers 11/36.Google Scholar
  79. Guajardo, J., Leigh, D., & Pescatori, A. (2014). Expansionary austerity? International evidence. Journal of the European Economic Association, 12(4), 949–968.CrossRefGoogle Scholar
  80. Hall, R., & Reis, R. (2015). Maintaining Central-Bank Financial Stability Under New-Style Central Banking. NBER Working Papers 21173.Google Scholar
  81. Hebous, S., & Zimmermann, T. (2016). Can Government Demand Stimulate Private Investment? Evidence from U.S. Federal Procurement. IMF Working Papers 16/60.Google Scholar
  82. Heimberger, P., & Kapeller, J. (2016). The Performativity of Potential Output: Pro-cyclicality and Path Dependency in Coordinating European Fiscal Policies. Working Paper Series 50, Institute for New Economic Thinking.Google Scholar
  83. Helgadottir, O. (2016). The Bocconi boys go to Brussels: Italian economic ideas, professional networks and European austerity. Journal of European Public Policy, 23(3), 392–409.CrossRefGoogle Scholar
  84. Holland, D., & Portes, J. (2012). Self-defeating austerity? National Institute Economic Review, 222, F4–F10.CrossRefGoogle Scholar
  85. Holmstrom, B., & Tirole, J. (1998). Private and public supply of liquidity. Journal of Political Economy, 106(1), 1–40.CrossRefGoogle Scholar
  86. IEO of the IMF. (2014). Independent Evaluation Office of the International Monetary Fund: IMF response to the financial and economic crisis.Google Scholar
  87. IEO of the IMF. (2016). The IMF and the crises in Greece, Ireland, and Portugal: An evaluation by the Independent Evaluation Office.Google Scholar
  88. Illing, G., Jauch, S., & Zabel, M. (2012). Die diskussion um den Euro: Endogene risiken und multiple Gleichgewichte. Leviathan (2), 156–172.CrossRefGoogle Scholar
  89. IMF. (2014). World Economic Outlook - Legacies, Clouds, Uncertainties. Washington (October).Google Scholar
  90. IMF. (2015a). An update of IMF staff’s preliminary public debt sustainability analysis. IMF Country Report, 15/186.Google Scholar
  91. IMF. (2015b). Crisis Program Review. November 09.Google Scholar
  92. IMF. (2016a). Fiscal Monitor - Acting Now, Acting Together. Washington (April).Google Scholar
  93. IMF. (2016b). World Economic Outlook - Too Slow for Too Long. Washington (April).Google Scholar
  94. in ’t Veld, J. (2013). Fiscal Consolidations and Spillovers in the Euro Area Periphery and Core. European Economy - Economic Papers 506, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.Google Scholar
  95. Issing, O. (2015). Die letzte Waffe - Helicopter money? SAFE Press Article, Frankfurt am Main, February 07.Google Scholar
  96. Janis, I. (1971). Groupthink. Psychology Today, 5, 43–46, 74–76.Google Scholar
  97. Jarocinski, M., & Lenza, M. (2016). How large is the output gap in the euro area. ECB Research Bulletin. 01 July 2016, European Central Bank.Google Scholar
  98. Jobst, A., & Lin, H. (2016). Negative Interest Rate Policy (NIRP): Implications for Monetary Transmission and Bank Profitability in the Euro Area. IMF Working Papers 16/172.Google Scholar
  99. Jordà, O., & Taylor, A. (2013). The Time for Austerity: Estimating the Average Treatment Effect of Fiscal Policy. NBER Working Papers 19414.Google Scholar
  100. Kahnemann, D. (2011). Thinking, fast and slow. New York: Farrar, Straus and Giroux.Google Scholar
  101. Kennedy, J. F. (1961). Speech at the 14th annual convention of Americans for Democratic Action, Washington, DC, May 11.Google Scholar
  102. Kentikelenis, A., Karanikolos, M., Reeves, A., McKee, M., & Stuckler, D. (2014). Greece’s health crisis: From austerity to denialism. The Lancet, 383(9918), 748–753.CrossRefGoogle Scholar
  103. King, S., & Henry, J. (2014). The Euro and the Three Musketeers. HSBC Global Research: Economics Global, September 10.Google Scholar
  104. Koo, R. (2011). The world in balance sheet recession: Causes, cure, and politics. Real-world Economics Review, 58, 19–37.Google Scholar
  105. Koo, R. (2016). Cycle of conflict between authorities and markets seen continuing for now. Nomura Brief, March 29.Google Scholar
  106. Krebs, T., & Scheffel, M. (2016). Structural Reform in Germany. IZA Discussion Papers 9787, Institute for the Study of Labor (IZA).Google Scholar
  107. Kydland, F., & Prescott, E. (1982). Time to build and aggregate fluctuations. Econometrica, 50(6), 1345–1370.CrossRefGoogle Scholar
  108. Kydland, F., & Prescott, E. (1990). Business cycles: Real facts and a monetary myth. Quarterly Review (Spr), 3–18.Google Scholar
  109. Lagarde, C. (2016). Leaked: The annotated Lagarde letter on Greece. Financial Times, May 06, http://blogs.ft.com/brusselsblog/2016/05/06/leaked-the-annotated-lagarde-letter-on-greece/. Accessed 01 Jun 2016.
  110. Lane, P. (2012). The European sovereign debt crisis. Journal of Economic Perspectives, 26(3), 49–68.CrossRefGoogle Scholar
  111. Legrain, P. (2014). How to finish the euro house. Center for European Reform, June.Google Scholar
  112. Leigh, A. (2012). How much did the 2009 Australian fiscal stimulus boost demand? Evidence from household-reported spending effects. B.E. Journal of Macroeconomics, 12(1), 1–24.CrossRefGoogle Scholar
  113. Levy Yeyati, E., & Panizza, U. (2011). The elusive costs of sovereign defaults. Journal of Development Economics, 94(1), 95–105.CrossRefGoogle Scholar
  114. Lucas, R. (1976). Econometric policy evaluation: A critique. Carnegie-Rochester Conference Series on Public Policy, 1(1), 19–46.CrossRefGoogle Scholar
  115. McKinnon, R. (1963). Optimum currency areas. American Economic Review, 53, 717–724.Google Scholar
  116. McLeay, M., Radia, A., & Thomas, R. (2014). Money creation in the modern economy. Bank of England Quarterly Bulletin, 54(1), 14–27.Google Scholar
  117. Mody, A. (2015). Living (Dangerously) Without a Fiscal Union. Working Papers 875, Bruegel.Google Scholar
  118. Mody, A., & Mazzolini, G. (2014). Austerity Tales: The Netherlands and Italy. Bruegel, October 26.Google Scholar
  119. Muellbauer, J. (2014). Combatting Eurozone deflation: QE for the people. VoxEU.org, December 23, http://voxeu.org/article/combatting-eurozone-deflation-qe-people. Accessed 01 May 2016.
  120. Mundell, R. (1963). A theory of optimum currency areas. American Economic Review, 51, 657–664.Google Scholar
  121. Nechio, F. (2011) Monetary policy when one size does not fit all. FRBSF Economic Letter 2011–18, June 13.Google Scholar
  122. OECD. (2016a). OECD economic outlook, vol. 2016 Iss. 1. Paris: OECD Publishing.Google Scholar
  123. OECD. (2016b). OECD economic surveys: Greece 2016. Paris: OECD Publishing.Google Scholar
  124. Ostry, J., Ghosh, A., & Espinoza, R. (2015). When should public debt be reduced? IMF Staff Discussion Notes 15/10, International Monetary Fund.Google Scholar
  125. Panizza, U. (2013). Do we Need a Mechanism for Solving Sovereign Debt Crises? A Rule-Based Discussion. IHEID Working Papers 03-2013, Economics Section, The Graduate Institute of International Studies.Google Scholar
  126. Panizza, U., & Presbitero, A. (2014). Public debt and economic growth: Is there a causal effect? Journal of Macroeconomics, 41, 21–41.CrossRefGoogle Scholar
  127. Papaioannou, E., Portes, R., & Reichlin, L. (2015). Greece: Seeking a way forward. VoxEU.org, June 19, http://www.voxeu.org/article/greece-seeking-way-forward. Accessed 01 May 2016.
  128. Perotti, R. (2012). The “Austerity Myth”: Gain without Pain? In Fiscal policy after the financial crisis, NBER Chapters (pp. 307–354). National Bureau of Economic Research, Inc.Google Scholar
  129. Pescatori, A., Sandri, D., & Simon, J. (2014). Debt and Growth; Is There a Magic Threshold? IMF Working Papers 14/34.Google Scholar
  130. Pew. (2016). Euroskepticism Beyond Brexit: Significant opposition in key European countries to an ever closer EU. Pew Research Center, Washington, DC, June 07.Google Scholar
  131. Ponticelli, J., & Voth, H.-J. (2011). Austerity and Anarchy: Budget Cuts and Social Unrest in Europe, 1919-2008. CEPR Discussion Papers 8513, Center for Economic and Policy Research.Google Scholar
  132. Portes, J., & Wren-Lewis, S. (2014). Issues in the Design of Fiscal Policy Rules. Discussion Paper Series 704, Department of Economics, University of Oxford.Google Scholar
  133. Praet, P. (2016). The ECB’s fight against low inflation: Reasons and consequences. Speech at Luiss School of European Political Economy, Rome, April 04, https://www.ecb.europa.eu/press/key/date/2016/html/sp160404.en.html. Accessed 01 June 2016.
  134. Rannenberg, A., Schoder, C., & Strasky, J. (2015). The Macroeconomic Effects of the Euro Area’s Fiscal Consolidation 2011-2013: A Simulation-Based Approach. Research Technical Papers 03/RT/15, Central Bank of Ireland.Google Scholar
  135. Reichlin, L., Turner, A., & Woodford, M. (2013). Helicopter money as a policy option. VoxEU.org, May 20, http://voxeu.org/article/helicopter-money-policy-option. Accessed 01 May 2016.
  136. Reinhart, C., & Trebesch, C. (2014). A Distant Mirror of Debt, Default, and Relief. NBER Working Papers 20577.Google Scholar
  137. Riera-Crichton, D., Vegh, C., & Vuletin, G. (2015). Procyclical and countercyclical fiscal multipliers: Evidence from OECD countries. Journal of International Money and Finance, 52(C), 15–31.CrossRefGoogle Scholar
  138. Rocholl, J., & Stahmer, A. (2016). Where Did the Greek Bailout Money Go. ESMT White Paper, WP-16-02.Google Scholar
  139. Rogoff, K. (2012). A centerless Europe cannot hold. Project Syndicate, April 01, http://www.project-syndicate.org/commentary/a-centerless-euro-cannot-hold. Accessed 01 May 2016.
  140. Rogoff, K. (2014). Paper money is unfit for a world of high crime and low inflation. Financial Times, May 28.Google Scholar
  141. Romer, D. (2009). Advanced macroeconomics (3rd edn.). New York: McGraw-Hill.Google Scholar
  142. Romer, P. (2016). Commons Memorial Lecture of the Omicron Delta Epsilon Society. https://paulromer.net/wp-content/uploads/2016/09/WP-Trouble.pdf.Google Scholar
  143. Rother, P., Schuknecht, L., & Stark, J. (2010). The Benefits of Fiscal Consolidation in Uncharted Waters. Occasional Paper Series 121, European Central Bank.Google Scholar
  144. Ryan-Collins, J. (2015). Is Monetary Financing Inflationary? A Case Study of the Canadian Economy, 1935-75. Working Paper Series 848, Levy Economics Institute.Google Scholar
  145. Sands, P. (2016). Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notes. M-RCBG Associate Working Paper Series, 52. Harvard Kennedy School.Google Scholar
  146. Saravelos, G., Brehon, D., & Winkler, R. (2016). Helicopters 101: Your guide to monetary financing. Deutsche Bank Research Special Report, April 15.Google Scholar
  147. Schmitt-Grohé, S., & Uribe, M. (2011). Pegs and Pain. NBER Working Papers 16847.Google Scholar
  148. Schuknecht, L. (2016). Resist the siren song of ‘Cheap’ government spending. Wall Street Journal, July 20.Google Scholar
  149. Sheard, P. (2013). Repeat After Me: Banks Cannot And Do Not “Lend Out” Reserves. Standard & Poor’s RatingsDirect, August 13.Google Scholar
  150. Sims, C. (1994). A simple model for study of the determination of the price level and the interaction of monetary and fiscal policy. Economic Theory, 4(3), 381–399.CrossRefGoogle Scholar
  151. Sims, C. (1999). The precarious fiscal foundations of EMU. DNB Staff Reports (Discontinued), 34.Google Scholar
  152. Sims, C. (2013). Paper money. Slides, January 14, http://sims.princeton.edu/yftp/PaperMoney/PaperMoneySlides.pdf. Accessed 01 May 2016.
  153. Sims, C. (2016). Fiscal policy, monetary policy, and Central Bank independence. In Proceedings, Economic Policy Symposium, Jackson Hole, August 25–27, Kansas City Fed.Google Scholar
  154. Sinn, H.-W. (2015). Why Greece should leave the Eurozone. New York Times, July 24.Google Scholar
  155. Tenreyro, S., & Thwaites, G. (2015). Pushing on a String: US Monetary Policy is Less Powerful in Recessions. CEPR Discussion Papers 10786, Center for Economic and Policy Research.Google Scholar
  156. Thaler, R., & Sunstein, C. (2008). Nudge: Improving decisions about health, wealth, and happiness. New Haven, CT: Yale University Press.Google Scholar
  157. The Economist. (2016). Out of ammo? February 20.Google Scholar
  158. Tilford, S. (2011). Gain or more pain in Spain? Center for European Reform, October.Google Scholar
  159. Tilford, S., & Whyte, P. (2011). Why stricter rules threaten the Eurozone. Center for European Reform, November.Google Scholar
  160. Turner, A. (2015a). Between debt and the devil: Money, credit, and fixing global finance. Princeton, CT: Princeton University Press.Google Scholar
  161. Turner, A. (2015b). The case for monetary finance - An essentially political issue. In Paper presented at the 16th Jacques Polak Annual Research Conference, hosted by the International Monetary Fund, Washington, DC, November 5–6.Google Scholar
  162. Turner, A. (2016). Why a future tax on bank credit intermediation does not offset the stimulative effect of money finance deficits. Institute for New Economic Thinking, Aug 2016.Google Scholar
  163. von Weizsäcker, J., & Delpla, J. (2011). Eurobonds: The blue bond concept and its implications. Policy Contributions 509, Bruegel.Google Scholar
  164. Wolf, M. (2012a). The German response. Financial Times, June 07, https://next.ft.com/content/bf08f8f7-8bff-3629-ad91-f0b5c7d1daf1. Accessed 01 May 2016.
  165. Wolf, M. (2012b). The riddle of German self-interest. Financial Times, May 29, http://www.ft.com/cms/s/0/4fe89d8c-a8df-11e1-b085-00144feabdc0.html#ixzz41IsFjef3. Accessed 01 May 2016.
  166. Wolff, G. (2014). Europe’s fiscal wormhole. Project Syndicate, October 24, https://www.project-syndicate.org/commentary/fiscally-responsible-eurozone-stimulus-by-guntram-b--wolff-2014-10. Accessed 01 May 2016.
  167. Wren-Lewis, S. (2014a). The entirely predictable recession. Mainly Macro Blog, September 26, http://mainlymacro.blogspot.de/2014/09/the-entirely-predictable-recession.html. Accessed 01 May 2016.
  168. Wren-Lewis, S. (2014b). The Eurozone scandal. Mainly Macro Blog, December 29, http://mainlymacro.blogspot.de/2014/12/the-eurozone-scandal.html. Accessed 01 May 2016.
  169. Zinsmeister, F. (2009). Die Finanzierung der deutschen Einheit - Zum Umgang mit den Schuldlasten der Wiedervereinigung. Vierteljahrshefte zur Wirtschaftsforschung, 78, 146–160.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Seminar for MacroeconomicsLudwig-Maximilians-Universität MünchenMünchenGermany

Personalised recommendations