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Begin New Search Topic Human Rights Author Daniel Gros

1. Reforming the Composition of the ECB Governing Council in View of Enlargement: An Opportunity Missed!

Author:
Daniel Gros
Publication Date:
05-2003
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
It is widely accepted that enlargement requires reform of the highest decision-making bodies of the European Central Bank (ECB). In particular, there are concerns that the Governing Council, which is composed of the six-member Executive Board of the ECB plus the governors of the participating national central banks (NCBs), will grow too large to work efficiently. In the absence of reform, it could end up having over 30 members - resembling more a mini-parliament than a decision-making body that has to manage a global currency in fast-moving financial markets. Moreover, the accession of a number of small countries is often perceived as a threat to the "power balance" in the Governing Council.
Topic:
Government, Human Rights, and International Organization
Political Geography:
Europe

2. A Public Stability Pact for Public Debt?

Author:
Daniel Gros
Publication Date:
01-2003
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
There is an urgent need to link the excessive deficit procedure with the issue of sustainability and hence the evolution of public debt. This note shows that there exists a simple way to introduce the evolution of public debt in the Stability Pact, which so far has focused exclusively on deficits. The link starts from the Maastricht criterion for participation in EMU concerning public debt and its reference value of 60% of GDP. The Maastricht criterion on public debt stipulates that if public debt exceeds 60% of GDP, it must be 'sufficiently diminishing and approaching the reference value at a satisfactory pace''.This note provides a numerical rule for evaluating whether public debt is indeed diminishing 'at a satisfactory pace'. This numerical rule is in accordance with the reference values in the Treaty and could be used as the basis for an 'excessive debt procedure'.
Topic:
Government, Human Rights, and International Organization
Political Geography:
Europe

3. Europe as a Global Economic Actor

Author:
Daniel Gros
Publication Date:
04-2002
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The three years since the start of EMU have been characterised by an extraordinary degree of volatility in global financial and other markets (oil, etc.). Most official comments have so far focused on the fact that Europe has remained an 'island of stability'. But this self congratulatory tone cannot mask the fact that EU institutions have generally not been in the forefront of the efforts to stabilise the global economy. This is partly understandable as most of the volatility originated outside the EU. But just 'putting one's own house in order' does not seem to be sufficient when global economic (or political) stability is at stake, as recent events amply demonstrate.
Topic:
Government, Human Rights, and International Organization
Political Geography:
Europe

4. Fiscal Policy Spillovers in the Euro Area: Where Are They?

Author:
Daniel Gros and Alexandr Hobza
Publication Date:
11-2001
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
What impact would a fiscal expansion in Germany have on the rest of the euro area? It has been generally suggested that it could go in either of two opposite directions, depending on the relative strength of two effects: the direct trade linkage and the financial market repercussions. A review of the results from four major macroeconomic models shows that the cross-country spillover effects of fiscal policy are indeed of uncertain sign and magnitude. Different models give quite different results if used in standardised simulations in terms of the sign, magnitude and time profile of the impact of a fiscal expansion in one member country (e.g. Germany) on other euro area countries. Fewer results are available concerning the potential spillover effects of structural policies, but they are similar to the ones concerning a budgetary stimulus: the magnitude of the spillover is small and varies across countries and over time.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe and Germany

5. One Size Must Fit All: National Divergences in a Monetary Union

Author:
Daniel Gros and Carsten Hefeker
Publication Date:
07-2000
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
What policy objective should a common central bank in a heterogeneous monetary union pursue? Should it base its decisions on the EU-wide average of inflation and growth or should it instead focus on (appropriately weighted) national welfare losses based on national rates of inflation and growth? We find that a central bank that minimises the sum of national welfare losses reacts less to common shocks and that this can lead to higher average union-wide expected welfare, if the variability of common shocks is large relative to the inflation bias. But for countries with a transmission mechanism close to the average, welfare can actually be lower in this case. The inflationary bias depends on the interaction between the transmission mechanism and distortions in labour markets.
Topic:
Economics, Government, Human Rights, International Trade and Finance, Migration, and Political Economy
Political Geography:
Europe