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.
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- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- 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
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
CEPR Policy Research
- 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
- Does Supporting Passenger Railways Reduce Road Traffic Externalities?Lalive, Luechinger, Schmutzler
- 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