http://www.VoxEU.org Recent Guido Tabellini articles on VoxEU.org en http://www.VoxEU.org/index.php?q=node/7359 Guido Tabellini, 29 November 2011

Last week’s failed auction of German debt showed that none would be immune from a blow-up of the Eurozone, and that normal central banks act as lenders of last resort to their governments. This column argues that unless the ECB starts to care explicitly about financial stability, the troubles will only get worse.

Full Article: Why the ECB needs to care about financial stability]]> Tue, 29 Nov 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7359 http://www.VoxEU.org/index.php?q=node/7171 Guido Tabellini, 27 October 2011

EU leaders are at it again. This column argues that the crisis won’t be over until the underlying flaw of the euro is fixed – namely the separation of monetary and fiscal policy. German public opinion has to realise that the euro was built on imperfect foundations and that these imperfections must be corrected. Meanwhile, the Italian president of the ECB will need all his technical and political expertise to keep the Eurozone together.

Full Article: EZ rescue: Déjà vu all over again]]> Thu, 27 Oct 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/7171 http://www.VoxEU.org/index.php?q=node/6757 Guido Tabellini, 15 July 2011

The Eurozone crisis is tearing Europe apart. This column argues that Eurozone leaders must (i) agree to create European-level institutions to monitor national budget and banking policies and (ii) draw a line between solvent and insolvent Eurozone nations before the markets do it for them. It adds that we are now discovering that a loss of sovereignty became inevitable the day we decided to create the single currency.

Full Article: The Eurozone crisis: What needs to be done]]> Fri, 15 Jul 2011 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/6757 http://www.VoxEU.org/index.php?q=node/5874 Guido Tabellini, 1 December 2010

The Irish bailout failed to stem contagion in the Eurozone. This column argues that the root cause was the separation of monetary policy (ECB) and fiscal policy (member states). If European authorities are unwilling to suspend this separation, the contagion will spread.

Full Article: Fighting the Eurozone’s infectious disease]]> Wed, 01 Dec 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5874 http://www.VoxEU.org/index.php?q=node/5622 Guido Tabellini, 5 October 2010

The current European economic governance needs reform. This column argues that rather than trying to invade national governments’ autonomy in economic policy, the European authorities should focus on the transfer of sovereignty in the field of financial supervision.

Full Article: Reforming the Stability Pact: Focus on financial supervision]]> Tue, 05 Oct 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5622 http://www.VoxEU.org/index.php?q=node/5100 Guido Tabellini, 26 May 2010

Improvisation in handling the crisis in Greece has given the impression that governments and European institutions are not capable of facing the toughest challenges. This column reminds us that in times like these, the credibility of institutions is essential and rests on consistency. The ECB decision to "sterilise" the purchase of bonds with inverse operations to drain liquidity puts this credibility at risk.

Full Article: The ECB: Gestures and credibility]]> Wed, 26 May 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/5100 http://www.VoxEU.org/index.php?q=node/4736 Fernanda Brollo, Tommaso Nannicini, Roberto Perotti, Guido Tabellini, 10 March 2010

Is the discovery of natural resources necessarily a good thing? Examining data from Brazil, this column finds that a 10% windfall in government revenues leads to a 12 percentage point increase in corruption and a 3 percentage point reduction in the probability that politicians have a degree. The chance that an incumbent is reelected raises by over 4 percentage points.

Full Article: The political resource curse]]> Wed, 10 Mar 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4736 http://www.VoxEU.org/index.php?q=node/3775 Guido Tabellini, 17 July 2009

What should we conclude about the implications of the global crisis for the future of the world economy? This column, the second of a two-part series, outlines the exit strategies required for fiscal and monetary policy. It says that the crisis ought to be seen as a temporary period of turmoil, rather than a paradigm-shifting event.

Full Article: Drawing conclusions about the crisis and the future]]> Fri, 17 Jul 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/3775 http://www.VoxEU.org/index.php?q=node/3773 Guido Tabellini, 16 July 2009

It’s time to start drawing conclusions about the global crisis. This column, the first of a two-part series, assesses the causes and nature of the problems. Although the crisis originated in financial market failings, policymakers are much to blame. Regulatory failure amplified private sector errors, and poorly planned policy responses exacerbated the troubles.

Full Article: Drawing conclusions about the crisis and its management]]> Thu, 16 Jul 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/3773 http://www.VoxEU.org/index.php?q=node/2368 Alberto Alesina, Guido Tabellini, 9 October 2008

The current crisis is a case of financial panic that risks a self-fulfilling nightmare. Governments should guarantee bank loans to end the panic.

Full Article: Calming the panic]]> Thu, 09 Oct 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/2368 http://www.VoxEU.org/index.php?q=node/1729 Alberto Alesina, Richard Baldwin, Tito Boeri, Willem Buiter, Francesco Giavazzi, Daniel Gros, Stefano Micossi, Guido Tabellini, Charles Wyplosz, Klaus F. Zimmermann, 1 October 2008

This is a once-in-a-lifetime crisis. Trust among financial institutions is disappearing; fear may spread. Last week’s US experience showed that saving one bank at a time won’t work. A systemic response is needed and in Europe this means an EU-led initiative to recapitalise the banking sector. Unless European leaders immediately unite to address this crisis before it spirals out of control, they may find themselves fighting over how best to salvage the aftermath.

Full Article: Open Letter to European leaders on Europe’s banking crisis: A call to action]]> Wed, 01 Oct 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/1729 http://www.VoxEU.org/index.php?q=node/1362 Guido Tabellini, 4 July 2008

Guido Tabellini talks to Romesh Vaitilingam about the role of culture and institutions in economic development over long periods of time. This was the subject of his presidential address to the annual congress of the European Economic Association, held in Budapest in August 2007.

Full Article: Culture and institutions]]> Fri, 04 Jul 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/1362 http://www.VoxEU.org/index.php?q=node/1259 Guido Tabellini, 23 June 2008

The ECB and the Fed are pursuing very different policies on inflation fighting and the use of monetary aggregates in guiding policy. One of Italy’s leading economists argues that either the ECB or the Fed is making a mistake.

Full Article: Why central banking is no longer boring]]> Mon, 23 Jun 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/1259 http://www.VoxEU.org/index.php?q=node/994 Guido Tabellini, 19 March 2008

The recent financial trouble has prompted much examination of private financial institutions, but few have asked why regulatory supervision did not prevent the crisis. This column argues that supervisory failure was also due to regulatory competition between national authorities and calls for a consolidated EU authority.

Full Article: Would an EU banking authority have done better?]]> Wed, 19 Mar 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/994 http://www.VoxEU.org/index.php?q=node/840 Guido Tabellini, 22 December 2007

Morality – defined as individual values and convictions about the scope of application of norms of good conduct – is an important factor in individual behaviour and thus economic outcomes. Such values evolve slowly so they are an important channel through which distant political history can influence current economic performance. Here is new evidence supporting this view.

Full Article: Does morality affect economic performance? Empirical evidence]]> Sat, 22 Dec 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/840 http://www.VoxEU.org/index.php?q=node/767 Guido Tabellini, 4 December 2007

Individuals' morality is a key mechanism through which distant political and economic history shapes the functioning of current institutions.

Full Article: Morality key to how past can shape current political institutions]]> Tue, 04 Dec 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/767 http://www.VoxEU.org/index.php?q=node/181 Alberto Alesina, Guido Tabellini, 8 June 2007

GDP per capita is a poor measure since it leaves out home production and intangible investments. Considering these two items, however, suggests that if GDP were measured correctly, Europe’s relative decline might be even more pronounced.

Full Article: US-Europe income gap: Is it for real?]]> Fri, 08 Jun 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/181 http://www.VoxEU.org/index.php?q=node/109 Guido Tabellini, 28 November 2006

This essay, written in November 2006, discusses an accounting trick that allows Italy to apply the cash proceeds of new liabilities to reduce its government deficit subject to the Stability and Growth Pact’s 3% limit.

Full Article: Italy’s accounting miracle]]> Tue, 28 Nov 2006 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/109 http://www.VoxEU.org/index.php?q=node/110 Tito Boeri, Guido Tabellini, 4 April 2006

Written in early 2006: The changes Berlusconi made to Italy’s electoral system will return Italy to its old tradition of short-lived governments and unstable coalitions.

Full Article: Italy’s return to political paralysis]]> Tue, 04 Apr 2006 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/110 http://www.VoxEU.org/index.php?q=node/163 Guido Tabellini, 1 September 2005

Written in September 2005: There is much to celebrate in spreading democracy around the world, but the empirical evidence suggests that it is not very important for economic success. The clear positive wealth-democracy correlation seems to arise since democracy is more likely to persist as a country grows richer.

Full Article: Democracy comes second]]> Thu, 01 Sep 2005 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/163