Europeans are, on average, better educated and live healthier, longer and more prosperous lives today than at any point in the past. However, this view on average achievements obscures large disparities, both within and between European countries. The income of the richest 20 % of households in ...
We propose a simple model that captures the link between bank and sovereign credit risk. It allows evaluating policy options to address this ‘doom loop’ in which the government may need to raise debt to recapitalise banks, and an increase in government debt raises sovereign risk and in turn gene...
The cultural and creative sectors are one of the most dynamic branches of the EU economy, fostering innovation, growth and job creation as well as social cohesion. But which cities do perform best in culture and creativity? Does the population size determine their performance? Can small and medi...
We revisit a central task of the extant liquidity literature, which is to identify effective measures of liquidity, in the context of sovereign bonds and the new Basel III regulatory framework. We critically assess the influential practice of identifying the best liquidity measures based on mont...
This report aims to deepen the understanding of the micro aspects of the use of the euro in international trade invoicing and/or settlement. What determines the use of a currency in the invoicing of international trade? Is the euro increasingly used as an invoicing currency in international trad...
The latest economic and financial crisis has shown how quickly vulnerabilities on the financial side of the economy can turn into a strong deterioration of public accounts, thus highlighting the importance to monitor fiscal risks arising outside the realm of public finances. This is particularly...
During the period 2008-2012, EU governments incurred substantial costs bailing out banks. As corporate income taxation (CIT) in most countries still favors debt- over equity-financing, reducing or eliminating this debt bias would complement regulatory reforms reducing costs of financial crises. ...
EMU’s unique economic governance structure was set up by the Maastricht Treaty to ensure the proper functioning of the economic and monetary union. A single monetary policy is entrusted with an independent central bank, a range of common policies is decided by the Council (notably the ECOFIN Cou...
The global financial crisis has led to a sharp deterioration of EU countries' public finances. Views are split regarding the most appropriate consolidation strategy to follow, in particular considering: the timing of fiscal consolidation in relation to the path of economic recovery reflecting (a...