http://www.VoxEU.org Recent articles added to VoxEU.org en http://www.VoxEU.org/index.php?q=node/7996 Pietro Alessandrini, Michele Fratianni, Andrew Hughes Hallett, Andrea F Presbitero, 16 May 2012

Unsustainable debt along Europe’s periphery is bringing the euro to breaking point. But this column argues that this is not simply the result of fiscal ill-discipline. After 2010, the Eurozone crisis went from a fiscal crisis to a balance-of-payments crisis – with different prescriptions for policy.

Full Article: The Eurozone crisis: Fiscal fragility, external imbalances, or both?]]> Wed, 16 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7996 http://www.VoxEU.org/index.php?q=node/7997 Peter Kretzmer, Mickey Levy, 16 May 2012

Greece’s economic and financial crisis is quickly deteriorating and there is no strategy – or even a coalition government – to figure out what to do next. This column looks at the lessons from Argentina’s default in 2001 and argues that Greece’s road to necessary economic reforms, fiscal sustainability and recovery may be even more daunting.

Full Article: Greece’s predicament: Lessons from Argentina]]> Wed, 16 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7997 http://www.VoxEU.org/index.php?q=node/7998 Lucas Chancel, Thomas Spencer, 16 May 2012

Between January 2002 and August 2008, the nominal oil price rose from $19.7 to $133.4 a barrel. This column gathers evidence on the role of this rise in prices in the global crisis. It suggests that oil prices had a direct impact on household expenditure on gasoline and increased mortgage delinquency rates. It adds that it also had many indirect impacts, notably though interest rate increases due to monetary policy.

Full Article: Greasing the wheel: Oil’s role in the global crisis]]> Wed, 16 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7998 http://www.VoxEU.org/index.php?q=node/7992 Glenda Quintini, 15 May 2012

Recent sizeable increases in youth unemployment are compromising the school-to-work transition of recent school graduates. This column uses optimal matching, a method borrowed from molecular biology, to study the transitions from school to work in Europe and the US. It argues the share of youth facing serious difficulties on the labour market is 18 percentage points smaller in the US than in Europe. In Europe, 30% of youth face difficulties settling into the labour market and another 15% are trapped in long-term unemployment or inactivity.

Full Article: School-to-work pathways in Europe and in the US]]> Tue, 15 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7992 http://www.VoxEU.org/index.php?q=node/7990 Joshua Aizenman, Menzie D. Chinn , 15 May 2012

Might more inflation be good for the US and Europe? This column looks at the housing market in the US and argues that, with houses dropping in price, buyers are playing a waiting game. And as buyers keep delaying, the price drops further. Given the importance of property in many economies, the knock-on effects are severe. Yet one way to break this vicious cycle is with inflation.

Full Article: The housing market and the case for higher inflation targets in the US and the Eurozone]]> Tue, 15 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7990 http://www.VoxEU.org/index.php?q=node/7989 Céline Carrère, Julien Gourdon, Marcelo Olarreaga, 15 May 2012

Regional integration schemes that include natural-resource-abundant countries have by and large been unsuccessful. Part of the reason is the uneven distribution of gains when resource-poor and resource-rich countries integrate. This column presents new evidence suggesting that the slow progress of regional integration efforts in the Middle East and North Africa can be explained by the reluctance of resource-rich countries to enter into trade agreements that will hurt them.

Full Article: Regional integration and natural resources: Who benefits?]]> Tue, 15 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7989 http://www.VoxEU.org/index.php?q=node/7979 Manmohan Singh, Peter Stella, 14 May 2012

Much of the debate over public finances in the US relates to the amount of debt, this column explores the type of debt. It criticises the recent suggestion that the US Treasury should start issuing floating rate notes.

Full Article: US debt issuance since 1951 and the fallacy of issuing floating rate notes ]]> Mon, 14 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7979 http://www.VoxEU.org/index.php?q=node/7986 Marco Annunziata, 14 May 2012

In Greece and Spain, around half of all workers under 25 are now unemployed. In Italy, Ireland, and Portugal, the rate of youth unemployment is around one in three. But this column argues that we shouldn’t go blaming austerity; even when these countries were booming, youth unemployment was still painfully high. The problem is far deeper.

Full Article: Wasted youth]]> Mon, 14 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7986 http://www.VoxEU.org/index.php?q=node/7988 Charles Wyplosz, 14 May 2012

With French and Greek voters rejecting austerity, politicians are once again taking the government spending debate seriously. This column argues that the voters are right – it is a bad idea to tighten fiscal policy when growth is so feeble. But the column adds that, wherever one looks, the road away from austerity looks desperately blocked.

Full Article: The impossible hope of an end to austerity]]> Mon, 14 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7988 http://www.VoxEU.org/index.php?q=node/7984 Hubert Escaith, Marcel Timmer, 13 May 2012

Global value chains and the international fragmentation of production challenge well-established trade policy models and raise new issues. Yet research has been hindered by the limited availability of proper statistics. This column introduces the World Input-Output Database (WIOD), a new public data source that offers unique opportunities to study the effects of fragmentation on a range of socioeconomic and environmental issues.

Full Article: The new World Input-Output Database ]]> Sun, 13 May 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7984