Tag Archives: Europe

Evolution of European Borders: 1000 Years in less than 3.5 Mins

HT: Marginal Revolution

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On Keeping Your Powder Dry: Fiscal Foundations of Financial and Price Stability

From Maury Obstfeld: Banking systems have rapidly grown to a point where for many countries bank assets amount to multiples of GDP. As a consequence, government’s capacity to provide stability-enhancing fiscal guarantees against systemic crises can no longer be taken for … Continue reading

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One thing I learned in Hanover this weekend – UK Housing Subsidies Edition

Sorry for the light posting – I was out of town for a college reunion. It was great to talk to old classmates. One of my friends who lives in London told me about new UK mortgage subsidy programs that … Continue reading

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Larry Summers on “The Fiscal and Economic Effects of Austerity”

From Larry Summers: Thank you for the opportunity to speak before this committee. You have chosen to address issues relating to austerity at an opportune time as both our economic and our budget situations are in considerable flux and as … Continue reading

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If Austerity is Working, What Does Failure Look Like?

From Paul Krugman

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Historical Hysteresis: Adverse Shocks vs Structural Problems

I started posting last week on the Summers & Blanchard paper, which is on hysteresis and the Unemployment problem in Europe starting in the mid 1970s. Many advocated structural explanations for hysteresis, but Summers & Blanchard looked to the Great Depression period … Continue reading

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Hysteresis & the Unemployment Problem

Summers and Blanchard have a paper on Hysteresis in Europe in the 1980s in which they discuss three main potential causes of hysteresis, which is a very high dependence of current employment on past unemployment. The three causes are (1) physical … Continue reading

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