My paper of Fiscal Convergence and Real Divergence in the Euro area

Yesterday I presented a paper at the European Parliament in Brussels in the context of the meeting between the Parliament and the President of the Eurogroup which will take place today. I argue that more fiscal convergence in the Euro area has come at the cost of increasing economic divergence in important economic outcomes, such […]

Deflation next?

A nice paper from the St Louis Fed is making the point that, unlike the Federal Reserve’s second Quantitative Easing (QE2), Mario Draghi’s  new measures, which includes the 550b Targeted Long Term Financing Operations (TLTR0), announced on May 8 and implemented on June 5, are so far failing in raising market expectations of future inflation. […]

The Roots of the Italian Stagnation

On May 8, I spoke at the Conference on Italy’s Challenges in the Midst of the Euro Crisis  organized in Rome by the Italian Treasury and  the Bruegel Research Center. My session was about “Short/medium run issues: fiscal adjustment and internal devaluation“. I discussed the Italian competitivess gap. This is what I said .