BIS: Monetary-Fiscal Crosswinds In The European Monetary Union Date
19 May 2021
Focus
This paper studies the monetary-fiscal mix in the European Monetary Union. When economies are hit by large shocks, such as the Covid crisis, the pre-set fiscal rules in a monetary union could be a constraint and offset the conduct of accommodative monetary policy. In addition, a more active fiscal policy could be a powerful tool to stabilise economic conditions when short-term interest rates hit the zero lower bound. The paper develops an econometric framework to study the dynamics between primary deficits, yields and returns, the market value of the debt, and inflation, under different monetary policy scenarios.
Morgan Kelly
The Irish economy has periodically been held up as an example that other countries can learn from, but the lessons to be learned have varied over time. Depending on the period, it has served as a model to be followed or a sobering lesson in failure. In 1988
The Economist dubbed it “the poorest of the rich”; by 1997 the same magazine was hailing it as “Europe’s shining light”. In the run-up to the Great Recession the country was “a poster-child for what not to do”; by 2013 it was “setting standards” for how to recover (
The Economist 2015, Roche et al. 2016: 1).
Machiavelli in the ruins of Greensill Capital
May 09,2021 - Last updated at May 09,2021
PRINCETON The collapse of Greensill Capital, a London-based financial services firm, offers a timely but costly warning about a number of contemporary trends. Clearly, we should be wary of the hype around financial innovation. But we also need to shine a brighter spotlight on the shady world of corporate lobbying, the regulation of risk, and other issues at the intersection of capitalism and government.
Greensill reportedly tried to use former British prime minister David Cameron to entice the Saudi government to press investors to contribute more funds to SoftBank so that SoftBank could increase its backing of Greensill. Then, following the start of the pandemic, Cameron reportedly lobbied for Greensill to secure access to an emergency loan scheme and pressed the National Health Service (NHS) to adopt an app owned by Greensill to pay NHS staff daily instead of monthly.
Opinion | L héritage monétaire de Napoléon lesechos.fr - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lesechos.fr Daily Mail and Mail on Sunday newspapers.