One of the fundamental questions in political economy is why governments often fail to adopt reforms that are believed to be needed and welfare-improving. The common explanation was well encapsulated by Jean-Claude Juncker, Prime Minister of Luxembourg and President of the Eurogroup: "We all know what to do, but we don't know how to get re-elected once we have done it".
Why are reforms so politically difficult?
Gino Gancia, Alessandra Bonfiglioli, 14 June 2011
Should market liberalisation precede democracy? The citizens’ point of view
Pauline Grosjean, Claudia Senik, 23 August 2007
One of the unexpected side-effects of China’s spectacular emergence is the spread of a new conventional wisdom about the sequencing of political and economic reforms in developing countries: economic reform should come first, and democracy second. The idea is that democratisation in the early stages of a country’s economic development can slow down further development.
Has Europe’s speed limit been raised?
Barry Eichengreen, 1 May 2007
Jean-Claude Trichet and his colleagues at the European Central Bank have clearly learned the wisdom of Paul Volcker: without first establishing anti-inflationary credibility, all is lost.
- The case for 4% inflationBall
- The banking crisis as a giant carry trade gone wrongAcharya, Steffen
- Everything the IMF wanted to know about financial regulation and wasn’t afraid to askBair
- Rethinking macroeconomic policy: Getting granularBlanchard, Dell'Ariccia, Mauro
- Iceland’s post-Crisis economy: A myth or a miracle?Danielsson
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Baldwin, Kawai, Wignaraja, 11 June 2013
Giavazzi, Portes, Weder di Mauro, Wyplosz
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood
- Austerity: Too Much of a Good Thing?Corsetti
- Understanding banks in emerging markets5 - 6 September 2013 / EBRD, London / European Bank for Reconstruction and Development (EBRD) and Tilburg University