INTERECONOMICS, Vol 49, No. 4· July/August 2014
By Daniel Gros, László Andor, Sebastian Dullien, H. Xavier Jara, Holly Sutherland.
With disparities in national unemployment rates reaching record levels, the debate on fiscal stabilisers in Europe has gained new momentum. Can a European unemployment insurance scheme help to absorb asymmetric shocks and bring about the desired level of macroeconomic stabilisation? What should such an unemployment benefit system look like? The contributions to this Forum explore the benefits expected from a European unemployment insurance scheme and discuss the difficulties in establishing such a policy.
By Debora Revoltella
By Barry Eichengreen
In June the European Central Bank announced a series of new steps to counter deflation. “Better late than never” was the response of many of the critics. But rather than bemoaning the failure of President Draghi & Co. to move earlier, it is more productive at this stage to ask: are the central bank’s measures now up to the task? Will they work, in the sense of taking deflation off the table and giving a boost to economic growth?