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External Publication

European Parliament

The single monetary policy and its decentralised implementation: An assessment

This paper assesses the decentralised implementation of monetary policy by the Eurosystem in terms of its transparency, efficiency and simplicity. Compared to the Fed, the Eurosystem seems to have higher staff numbers and operational costs for similar tasks.

By: Francesco Papadia and Alexander Roth Topic: European Macroeconomics & Governance, European Parliament, Testimonies Date: October 4, 2017
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Blog Post

Italian economic growth and the Euro

While the Euro has frequently been blamed for the poor growth performance of Italy over the years, a long-term analysis shows deteriorating growth before the introduction of the Euro. Additionally, Italy has shown worse performance than other euro-periphery countries, such as Spain, implying deeper structural reasons for Italy’s economic malaise.

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: July 26, 2017
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Blog Post

Central banks: from omnipotence to impotence?

Like the price of financial assets, the market assessment of the capacity of central banks to achieve their price stability objective fluctuates between omnipotence and impotence. We do not agree with this binary view of the world and we examine in this post the case of the European Central Bank (ECB). We argue that the ECB still has some instruments left. It should consider moving beyond increasing sovereign debt purchases, which would be ineffective and pose risks. More important is to step up work on structural and fiscal policies.

By: Francesco Papadia and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: March 2, 2016
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Blog Post

Can the European Central Bank control interest rates?

The short answer is a hesitant yes, bordering with a timid no.

By: Giuseppe Daluiso and Francesco Papadia Topic: European Macroeconomics & Governance Date: July 23, 2013
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Policy Contribution

Central bank cooperation during the great recession

During the Great Recession, central banks went well beyond their normal operations and provided liquidity in unlimited amounts, in foreign currency and to foreign banks. Central bank cooperation took the form of a swap network, and amounted to an episode of global monetary policy.

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: June 19, 2013
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Blog Post

What is the net of good and bad news from Brussels and Washington?

The short answer is: somewhat positive. The longer, but still broad-brush, answer starts from noting that two important documents have been issued in the last few days: the In-depth reviews following the so called AMR (Alert Mechanism Report) from the European Commission and the World Economic Outlook from the IMF.

By: Francesco Papadia and Giuseppe Daluiso Topic: European Macroeconomics & Governance, Global Economics & Governance Date: April 22, 2013
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Blog Post

Where has all the (base) money gone?

The short answer is: into the liquidity trap.

By: Francesco Papadia and Giuseppe Daluiso Topic: European Macroeconomics & Governance Date: March 27, 2013
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Blog Post

Has the European Central Bank transformed itself into a hedge fund?

Some observers have accused the European Central Bank (ECB) of having transformed itself into a hedge fund because of the purchases of government securities from stressed countries under the Securities Market Program (SMP).

By: Carlos De Sousa and Francesco Papadia Topic: European Macroeconomics & Governance Date: March 8, 2013
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Blog Post

Chart of the week - Economic convergence in the euro area: on apprend de ses erreurs

Economic commentators are rightly worried about the different activity developments between the “core” and the “ periphery” of Europe, with the former in acceptable conditions and the latter in recession. There are, however, other macroeconomic developments worth of notice, with a fairly different, and more positive, message. The charts below show on-going convergence towards balance […]

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: February 4, 2013
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Blog Post

An inexorable spiral?

Some market participants seem to consider financial support from the euro area governments, either in bilateral form or in the EFSF (and tomorrow ESM) guise, as the first step in an inexorable spiral, in which yields get higher and higher and market access is pushed further and further into the future. In short, the European […]

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: February 4, 2013
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Blog Post

Where did smart money go in 2012?

The short answer is: into the periphery of Europe.

By: Francesco Papadia and Carlos De Sousa Topic: European Macroeconomics & Governance Date: December 11, 2012
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Blog Post

At last a behavioural change

With the Fiscal Compact and other institutional innovations, Europe is attempting to remedy some of the weaknesses revealed by the crisis in the governance of the euro area. Important as it is, one cannot be sure that the new institutional set-up will guarantee the avoidance of the macroeconomic mistakes that fed the crisis. It is […]

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: October 25, 2012