VoxEU.org: Aaron Tornell http://www.VoxEU.org Recent Aaron Tornell articles on VoxEU.org en The tragedy of the commons at the European Central Bank http://www.VoxEU.org/index.php?q=node/8122 Aaron Tornell, Frank Westermann, 22 June 2012

Despite the recently-announced €100 billion European Financial Stability Facility loan to Spain and the recent Greek elections, this column argues that Eurozone periphery may soon need another large-scale rescue operation. But it fears that without reform at the ECB, the rescue package will be just yet another temporary plaster over the cracks.

Full Article: The tragedy of the commons at the European Central Bank]]> Fri, 22 Jun 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8122 Has the ECB hit a limit? http://www.VoxEU.org/index.php?q=node/7789 Aaron Tornell, Frank Westermann, 28 March 2012

“Should the inflation outlook worsen, we would immediately take preventive steps”. So said Mario Draghi, President of the European Central Bank. This column argues that these are brave words given that the ECB has hit a limit in its ability to prevent an acceleration of inflation.

Full Article: Has the ECB hit a limit?]]> Wed, 28 Mar 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7789 Eurozone Crisis, Act Two: Has the Bundesbank reached its limit? http://www.VoxEU.org/index.php?q=node/7391 Aaron Tornell, Frank Westermann, 6 December 2011

If you thought the Eurozone crisis was coming to an end this week, this column argues that we may barely be reaching the end of Act One.

Full Article: Eurozone Crisis, Act Two: Has the Bundesbank reached its limit?]]> Tue, 06 Dec 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7391 Greece: The sudden stop that wasn’t http://www.VoxEU.org/index.php?q=node/7033 Aaron Tornell, Frank Westermann, 28 September 2011

With economists’ eyes fixed squarely on Greece, this column tries to solve a puzzle. Since 2008, tens of billions of euros have fled Greek bank accounts. Yet somehow the country still has a current-account deficit. Where has this money come from?

Full Article: Greece: The sudden stop that wasn’t]]> Wed, 28 Sep 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7033 In defence of credit crises: No reward without risk http://www.VoxEU.org/index.php?q=node/2461 Romain Rancière, Aaron Tornell, Frank Westermann, 20 October 2008

The current credit crisis has prompted many calls for regulation to prevent such an event from ever happening again. This column defends a financial system that engenders systemic risk. Economies that risk occasional credit crises enjoy higher long-run growth, and the cost of the US bailout is well within historical norms.

Full Article: In defence of credit crises: No reward without risk]]> Mon, 20 Oct 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/2461