Agora
Posts in Europe
Does the EU Commission suffer from optimism bias? (Part 2)
In the previous blog we expressed concern that the European Commission may suffer from an optimism bias. We noted that the long-run outlook for real GDP growth in the EU27 as a whole appeared to be based on too-favorable labor productivity growth assumptions.
Contributor: Bob Traa & Jens Bastian
Categories: Europe (276), Economy (314)
Does the EU Commission suffer from optimism bias? (Part 1)
This blog post is based on Chapter 8 of a new book: “The Macroeconomy of the European Union,” by Bob Traa, available on Amazon.com. The book examines structural considerations for potential growth, fiscal and debt developments, and the fiscal rules in the EU27 and in each individual member state, including Greece.
Contributor: Bob Traa & Jens Bastian
Categories: Europe (276), Economy (314)
Reflections on Greece's balance of payments
The current account. We can think of GDP as income (Y) from the production and supply of goods and services: production determines “income.” On the demand side, we can distinguish four categories: consumption (C), investment (I), exports (X), and imports (M). Thus, when demand is equal to supply: Y = C + I + X - M.
Contributor: Bob Traa & Jens Bastian
Categories: Europe (276), Economy (314), Greece (469)
Tailor-made Maastricht criteria for Greece?
The European Union is discussing how to reform the fiscal rules for its member states. The original rules, called the “Maastricht Criteria” for the deficit and the debt, appeared straightforward, in principle. They called for the deficit of a member state to remain below 3 percent of GDP a year, while the stock of debt should not exceed 60 percent of GDP.
Contributor: Bob Traa & Jens Bastian
Categories: Europe (276), Economy (314), Greece (469)
Where is Odysseus? Part 6 - Potential real GDP
As in our previous five monthly blogs, we continue to trace the progress of modern-day Odysseus, who started a long voyage in 2018 to help bring Greece back home to a sustainable and prosperous economy. He is seeking to navigate the winds of a high debt ratio of 185 percent of GDP towards a debt ratio of 60 percent of GDP. The plan that Odysseus had developed in 2018 is described in a book on the macroeconomy of Greece.
Contributor: Bob Traa & Jens Bastian
Categories: Europe (276), Politics (367), Economy (314), Greece (469)