Virtual Issue on Financial Crisis: Free collection of articles from Economic Policy

Free until 31 December to celebrate 30 years of Economic Policy:


Virtual Issue: The Financial Crisis

We’ve pulled together a collection of articles reflecting on the range of analysis on the Global Financial and Eurozone crises appearing in Economic Policy over the last 5 years. This virtual issue focuses on one of the most acute contemporary challenges to economic policy and how the journal has contributed to our understanding of the European experience.

Cyprus: from boom to bail-in
Alexander Michaelides (2014) 29 (80): 639-689

The Greek debt restructuring: an autopsy
Jeromin Zettelmeyer, Christoph Trebesch, Mitu Gulati (2013) 28 (75): 513-563

External imbalances in the eurozone
Ruo Chen, Gian Maria Milesi-Ferretti, Thierry Tressel (2013) 28 (73): 101-142

The eurozone crisis: how banks and sovereigns came to be joined at the hip
Ashoka Mody, Damiano Sandri (2012) 27 (70): 199-230

From Great Depression to Great Credit Crisis: similarities, differences and lessons
Miguel Almunia, Agustín Bénétrix, Barry Eichengreen, Kevin H. O’Rourke, Gisela Rua (2010) 25 (62): 219-265

Lessons from a collapse of a financial system
Sigridur Benediktsdottir, Jon Danielsson, Gylfi Zoega (2011) 26 (66): 183-235

The great retrenchment: international capital flows during the global financial crisis
Gian-Maria Milesi-Ferretti, Cédric Tille (2011) 26 (66): 289-346

Recapitalization, credit and liquidity
Mike Mariathasan, Ouarda Merrouche (2012) 27 (72): 603-646

Systemic risk, sovereign yields and bank exposures in the euro crisis
Niccolò Battistini, Marco Pagano, Saverio Simonelli (2014) 29 (78): 203-251

Financial crises: lessons from history for today
Selin Sayek, Fatma Taskin (2014) 29 (79): 447-493

Banking crisis management in the EU: an early assessment
Jean Pisani-Ferry, André Sapir Econ Policy (2010) 25 (62): 341-373

This virtual issue is part of a broader celebration of Economic Policy’s 30th anniversary, which also includes the publication of Thirty Years of Economic Policy: Inspiration for Debate. Thirty Years of Economic Policy situates the Journal within a long view of its influence on economic-policy thinking, bringing together a selection of highly influential articles from the first 30 years of Economic Policy, which analyse some of the key global economic-policy challenges of our time within five broad areas: monetary and exchange rate policy; fiscal policy; European integration; unemployment and labour markets; and market regulation. Thirty Years of Economic Policy reflects on the major contribution that the Journal has made to economic-policy debate since its launch in 1985, and provides students, researchers and policy professionals a ‘reader’ of the progress we have made in understanding these key issues.

Sports Sunday; DEW; Talking Point

It seems that not everyone enjoys the massive media coverage allocated to the rugby and football events.  Lifted from the comments, Sarah Carey writes:


I think sports should be on at the end of the news for a minute, and Saturday or Sunday afternoons for all-Irelands and perhaps the semi’s. Instead it has (through marketing – its an economics thing) come to dominate the media to the point where it’s not something men take an interest in after work, but a constant mainstream time and space occupying event. It used to be sufficient to shout for your county during Championship season and your country on the rare occasion we won anything (Ole!) but now it’s CONSTANT and even women ;-) are expected to be able to converse about a wide variety of sports AS IF IT MATTERED. And as if the nobility attached to PLAYING sports is earned simply by watching it, on a telly, on Tuesday nights and Wednesday nights, and all weekend, and all the golf opens, and horse racing (I mean, if you’re not betting on a horse at Cheltenham WHAT’S WRONG WITH YOU) and as for F1 PLEASE/ cars going around and around? and I’m sorry. Rugby is a good sport, but you know it’s not a widespread country sport. It’s a posh boy sport. And it’s getting very dangerous with them all going around built like tanks and no son of mine will play it.
Hockey, there’s a grand sport. Gentlemanly and understated and no fuss and grandiosity. And only the odd injury if you put your head in the wrong place.
As for cycling, with ye going around in packs on Sunday blocking up the roads in that ridiculous gear instead of lazing in bed. Or out golfing. What happened to golf? The men could do their bonding and blabbing in awful clothes out of sight of the rest of us.
And all of it, even GAA, which really is noble, all about the money money money.
I’m going to set up a radio station which guarantees NEVER to have sport on it.

Right, got that off my chest!

As for compelling viewing on Sunday afternoons, you really can’t beat Pride and Prejudice. Or a good Agatha Christie. Something soothing to the nerves.

Sarah will be recording the Talking Point show at the DEW on Friday: 1pm in the library room at the Hodson Bay and everyone welcome to pile in and watch. Colm McC, Karl and Lorcan Sirr on panel.

The DEW programme is available here.

Profile of Olivier Blanchard; More on IMF and Irish Bailout

The Washington Post carries an extensive profile of Olivier Blanchard, now of PIIE after his period as IMF economic counsellor – here.

The section on the Irish bailout is interesting:


The one place European leaders were anxious for a bank rescue, however, was in Ireland, where by fall 2008 banks were already reeling from losses after the bursting of a giant real estate bubble. The Irish government had nationalized one big bank and bailed out several others, but the cost proved so high that two years later the government itself was on the verge of defaulting on its own debts and turned to the international community for help.

The IMF had convinced Irish officials that, as part of any rescue package, those who had lent money to the banks should be forced to share in the pain. But Jean-Claude Trichet, head of the European Central Bank and a key player in any rescue plan, was adamant that there be no “haircuts” for bank creditors.

Trichet’s motivation was not surprising. The biggest creditors of the bankrupt Irish banks were French and German banks that themselves could go under if forced to recognize such losses, requiring costly and unpopular bailouts from their own governments. He also feared that any debt restructuring, as it is politely called, might make it difficult and more expensive for other European banks to borrow. Trichet went so far as to threaten to cut all central-bank lending to Irish banks if their debts were restructured, the equivalent of a death sentence for the Irish banking system.

With no other options, Ireland agreed to guarantee all of its banks’ debts, paying for it with a $67 billion international loan package whose harsh terms would drive the Irish economy into a deep recession and saddle a generation of Irish taxpayers with the full cost of repayment.

Strauss-Kahn, desperate for the Fund to play a visible role in the crisis, agreed to go along with the terms of the bailout. In rationalizing its participation, the Fund was forced to issue what Blanchard and his colleagues knew were unrealistically optimistic predictions about the quick recovery of the Irish economy. It would not be the only time the Fund would buckle to political pressure from European governments that are among its largest shareholders.

“We were in a difficult position calling attention to the fact that the European banking system may have been insolvent,” Strauss-Kahn said in an interview from Morocco. “It was not our job to cause bank runs. Olivier’s intellectual authority on that matter was particularly helpful, if not totally successful.”

Economic and Social Review: Autumn 2015 Issue

Vol 46, No 3, Autumn (2015)

Table of Contents


Blowing the Bubble: The Global Funding of the Irish Credit Boom PDF
Mary M. Everett 339-365
Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data PDF
Holger Görg, Aoife Hanley, Ingrid Ott 367-387
A Reduced-form Equation for the Unemployment Rate Estimated from a Panel of Nineteen OECD Countries PDF
Dimitris Hatzinikolaou, Konstantina Girtzimani, Christos Mousafiris 389-397
Are Classroom Internet Use and Academic Performance Higher after Government Broadband Subsidies to Primary Schools? PDF
Marie Hyland, Richard Layte, Seán Lyons, Selina McCoy, Mary Silles 399-428

Policy Section Articles

Wages and Ireland’s International Competitiveness PDF
Rory O’Farrell 429-458
A Needs and Resources Assessment of Fiscal Equalisation in the Irish Local Government System PDF
Gerard Turley, Darragh Flannery, Stephen McNena 459-484