Intereconomics - Review of European Economic Policy
Newsletter

Volume 46, November/Decmber 2011

The November/December issue of Intereconomics features a Forum that examines whether or not the world economy is headed back into recession. Prominent economists such as Justin Lin, the World Bank’s chief economist, and Carmen Reinhart, co-author of the financial crisis bible “This Time Is Different”, are just two of the authors who weigh in with their economic predictions as well as their prescriptions for remedying the global economic malaise. Other articles in this issue include an analysis of the deterioration of Italy’s fiscal health; an examination of the origins and consequences of the current account deficits in Greece, Portugal and Spain; and an Editorial detailing the importance of separating investment and commercial banking.

FEATURED TOPIC

Is the Global Economy on the Brink of Recession?

In light of slowing economic growth rates, shrinking consumer and business confidence, and stubbornly high unemployment figures, could it be that the austerity path being taken by many Western economies is pushing the world economy into a double-dip recession? Or, conversely, has there been too little budget austerity thus far? Is a global double-dip a possibility, a likelihood or even an inevitability? What steps can policymakers take to minimise this risk? Can political stalemates in Europe and the USA be overcome to implement the necessary policies? Six prominent economists from both sides of the Atlantic examine these and other questions in this issue’s Forum.

ADDITIONAL HIGHLIGHTS FROM THE CURRENT ISSUE

Germany’s Debt Brake: Pulling the EU Out of Its Debt Trap?

Ognian N. Hishow (German Institute for International and Security Affairs) examines the effects that a German-style debt brake would have in other EU member states. Though he finds much to praise about the German law, he concludes that a gradual introduction of a “debt brake light” might serve the best interests of other EU countries.

Italy’s Fiscal Crisis

Georg Erber (German Institute for Economic Research) explores Italy’s dire fiscal situation. Over the past twenty years, the country has failed to adapt to increasing global competition. Rather than modernising its economy, Italy relied on financial engineering and accounting tricks to mask its deteriorating finances. Is it possible that Italy’s EMU membership made things worse?

How Does European Termination Rate Regulation Impact Mobile Operator Performance?

Edmond Baranes (University of Montpellier I), Laurent Benzoni (University of Panthéon-Asssas) and Cuong Hung Vuong (International University) present an empirical study on the impacts of mobile termination rate regulation on European mobile operator performance. Their econometric results show that current regulation presents little risk to incumbent operators while positively impacting entrant operators.

Current Issue of Intereconomics Online

QUOTE OF THE MONTH

Most of the shocks that we would classify as black swans today would have caused only local damage in the past, even during the first half of the twentieth century - many such events were fairly invisible to people elsewhere. Now the impact of shocks has been modified and, in important aspects, amplified by the structural changes that have been taking place and accelerating over the last decade.

from Vanessa Rossi's Forum contribution Global Growth and Volatility - Turbulence Is the New Normal

About Intereconomics - Review of European Economic Policy

Intereconomics is jointly produced by ZBW - Leibniz Information Centre for Economics and the Centre for European Policy Studies (CEPS). The journal appears bimonthly and features papers by economists that deal with economic and social policy issues and trends in Europe or affecting Europe. To submit a paper for publication, please visit the Call for Papers section of our website for relevant information.

Intereconomics is published by Springer-Verlag Berlin Heidelberg.

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Intereconomics - Review of European Economic Policy Newsletter

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