In this paper we construct Financial Conditions Indices (FCIs) for the euro area, for the period 2003 to 2011, using a wide range of prices, quantities, spreads and survey data, grounded in the theoretical literature. One FCI includes monetary policy variables, while two versions without...

Since the start of the European Monetary Union fiscal policy in the Euro area has been dominated by the Stability and Growth Pact (SGP). Quite obviously the SGP has been unsuccessful in fulfilling its goals, fiscal sustainability and supporting economic growth. More and more countries have...

Financialization is a process whereby financial markets, financial institutions and financial elites gain greater influence over economic policy and economic outcomes. Financialization transforms the functioning of economic system at both the macro and micro levels. Its principal impacts are to...

In the present paper we question the mainstream diagnosis of Germany’s post-2000 stagnation as well as the prescribed remedies. We show that the ‘institutional sclerosis’ view of Germany’s stagnation is unfounded and that therefore the political measures proposed and actually taken are...

Economic recovery plans make up a important part of the wide-ranging package of measures that economic policy-makers worldwide have taken in response to the financial and economic crisis. More specifically, the EU Member States have either approved or announced fiscal measures to boost economic...

In this paper we construct financial conditions indices (FCIs) for the euro area, for the period 2003 to 2011, using a wide range of prices, quantities, spreads and survey data, grounded in the theoretical literature. One FCI includes monetary policy variables, whilst two versions without...

Even if shortening the maturity of government debt does not put downward pressure on government bond yields, debt management may still become an important policy tool to serve quantity or fiscal objectives at very low interest rates. The US example in the 1930s and the recent Japanese case...

This paper develops a context-specific model (Greif, 1997) to analyze the case of failed market-oriented reform in Colombia during 1974-78. The methodology keeps the contextual specificity at a manageable level, which is no more than the institutional structure under consideration, while it...

Türkiye ekonomisinde 2000 yılı başından itibaren kronikleşen enflasyonu düşürebilmek amacıyla; kamu finansmanının disipline edilmesi, yapısal önlemlerin alınması ve kur taahhütlerinde bulunulması gibi ortodoks istikrar programlarına özgü önlemleri içeren ve 3 yıllık...

Macroeconometric policy simulation models allow for an analysis, and, above all, for a quantification of the effects different economic policies have on the various variables that represent the economy. Despite the seminal ‘Lucas critique’ levelled against them, these models are still widely...