Search

4195 results found

• 

  Policy Notes No. 6

  What Should Be Done with Greek Banks to Help the Country Return to a Path of Growth?

  The recapitalization of Greek banks is perhaps the most critical problem for the Greek state today. Despite direct cash infusions to Greek banks that have so far exceeded €45 billion, with corresponding guarantees of around €130 billion, credit expansion has failed to pick up. There are two obvious reasons for this failure: first, the massive […]
• 

  Working Paper No. 851

  Money Creation under Full-reserve Banking

  This paper presents a stock-flow consistent model+ of full-reserve banking. It is found that in a steady state, full-reserve banking can accommodate a zero-growth economy and provide both full employment and zero inflation. Furthermore, a money creation experiment is conducted with the model. An increase in central bank reserves translates into a two-thirds increase in […]
• 

  Working Paper No. 850

  The Macroeconomics of a Financial Dutch Disease

  We describe the medium-run macroeconomic effects and long-run development consequences of a financial Dutch disease that may take place in a small developing country with abundant natural resources. The first move is in financial markets. An initial surge in foreign direct investment targeting natural resources sets in motion a perverse cycle between exchange rate appreciation […]
• 

  Working Paper No. 849

  Bank Leverage Ratios and Financial Stability

  Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels in the wake of the global financial crisis (GFC) were exceptionally thin, necessitating a string of costly […]
• 

  Working Paper No. 848

  Is Monetary Financing Inflationary?

  Historically high levels of private and public debt coupled with already very low short-term interest rates appear to limit the options for stimulative monetary policy in many advanced economies today. One option that has not yet been considered is monetary financing by central banks to boost demand and/or relieve debt burdens. We find little empirical […]
• 

  One-Pager No. 50

  A Public Investment Priority for Job Creation in Turkey

  This one-pager presents the key findings and policy recommendations of the research project report The Impact of Public Investment in Social Care Services on Employment, Gender Equality, and Poverty: The Turkish Case, which examines the demand-side rationale for a public investment in the social care sector in Turkey—specifically, early childhood care and preschool education (ECCPE)—by […]
• 

  MME, October 18, 2015

• 

  Αποψη: Νέα ανακεφαλαιοποίηση και οι παγίδες των προηγούμενων

  Kathimerini, 18 Οκτώβριος 2015. Με επιφύλαξη παντός δικαιώματος. Ο​​ι τραυματισμένες ελληνικές τράπεζες θα βρεθούν σύντομα αντιμέτωπες με έναν νέο κύκλο ανακεφαλαιοποιήσεων, οι οποίες είναι συζητήσιμο αν θα καταφέρουν να αποκαταστήσουν τον ρόλο του παρόχου ρευστότητας προς την οικονομία, που είχαν οι τράπεζες πριν από την κρίση. Σε αυτό το πλαίσιο είναι σημαντικό να προειδοποιηθούν οι […]
• 

  Working Paper No. 847

  Integration, Spurious Convergence, and Financial Fragility

  The Spanish crisis is generally portrayed as resulting from excessive spending by households, associated with a housing bubble and/or excessive welfare spending beyond the economic possibilities of the country. We put forward a different hypothesis. We argue that the Spanish crisis resulted, in the main, from a widening deficit position in the nonfinancial corporate sector—the […]
• 

  2015’s Most & Least Recession-Recovered Cities

  WalletHub, October 12, 2015. All Rights Reserved. For many Americans today, the Great Recession is nothing more than the distant shadow of a troubled economic past. The longest downturn since the Great Depression officially ended six years ago. Cities coast to coast have completely bounced back — some even surpassing their pre-recession economic levels, thanks to lucrative […]
• 

  Working Paper No. 846

  Secular Stagnation or Stagnation Policy?

  The current debate on secular stagnation is suffering from some vagueness and several shortcomings. The same is true for the economic policy implications. Therefore, we provide an alternative view on stagnation tendencies based on Josef Steindl’s contributions. In particular, Steindl (1952) can be viewed as a pioneering work in the area of stagnation in modern […]
• 

  Summary No. 3

  Summary Fall 2015

  This issue includes the two most recent strategic analyses, for Greece and the United States. The Levy Institute Macro Modeling Team argues that Greece cannot return to economic growth under austerity. The strategic analysis of the US economy follows, and shows that economic growth could easily be undermined by such things as a rising dollar, […]