Currency and Financial Markets Economic Policy Europe

Towards a Euro Union

Why we need more European integration to prevent further crises. Eleven German economists, lawyers and political scientists – the Glienicker Group – make suggestions.

Crisis, what crisis? If public sentiment in Germany is anything to go by, there is little reason to worry about Europe. The period when it was feared that the euro might collapse seems a long time ago. Financial markets have calmed down. The design flaws of the monetary union seem to have been papered over, and … [continue reading]

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Currency and Financial Markets Economic Policy Europe Macroeconomics

The Drawbacks of Forward Guidance

This article first appeared on Project Syndicate on 11th October 2013.

The nomination of Janet Yellen to succeed Ben Bernanke as Chair of the US Federal Reserve comes at one of the riskiest moments in the recent history of the Fed. The Fed’s announcement in May that it might start tapering its long-term asset purchases surprised many central bankers, and triggered a sell-off from markets worldwide. But some of the good news about America’s economy was bad news for financial … [continue reading]

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Currency and Financial Markets Europe Public Finances and Financial Economics

The Costs for Germany if the Eurozone Collapses

This article first appeared in the Autumn 2013 issue of Europe’s World (

It’s not a message that public opinion in Germany wants to hear, but a collapse of the EU’s troubled single currency would have devastating economic, financial and political consequences for the eurozone’s largest and most successful member.

Germans have long been among the most europhile of countries, but their mood is turning against Europe and its common currency, the euro. There’s now an openly anti-euro … [continue reading]

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Currency and Financial Markets Europe

How Far Does ECB Mandate Go?

This post is based on my statement on the ECB’s bond purchase program before the German Federal Constitutional Court on 11 June.

How Far Does ECB Mandate Go? This was the key question at issue in the hearings before the Federal Constitutional Court of Germany in Karlsruhe on June 11 and 12, 2013. Policy statements “on the ECB’s monetary policy mandate and the potential impact of the ECB’s measures on national budgets” have been requested. Behind this is the dispute … [continue reading]

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Currency and Financial Markets Europe

The ECB must open itself up

Published in Financial Times (10th of June 2013)

On Tuesday, the conflict between the European Central Bank and the Bundesbank will turn into a showdown before the German constitutional court on the legality of eurozone policy decisions. No matter how the court eventually rules, the case is straining a difficult relationship. It is time to defuse this eurozone time bomb. As one of 17 national central banks, the Bundesbank is part of the eurosystem headed by the ECB. The current … [continue reading]

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Economic Policy Europe

Scapegoating Germany is easy but wrong

published in Financial Times (10th of April 2013)

The most terrifying words in the English language, according to Ronald Reagan, are: “I’m from the government and I’m here to help.” Today, for some Europeans, they are: “I’m from the EU and I’m here to bail you out.”

Germany and the single currency have been made scapegoats for the problems of member states and for Europe’s inability to overcome the continent’s financial and economic crises. Berlin is accused of lacking solidarity[continue reading]

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