Category Archives: Research papers

New discussion paper on international correlation of business cycles

A new discussion paper by Paul De Grauwe and Yuemei Ji on international correlation of business cycles has been published by the Centre for Economic Policy Research:

Also see their column “Synchronisation in business cycles: An endogenous explanation” at VoxEU:

A CeLEG Working Paper “One EMU Fiscal Policy for the EURO” published

A preliminary version of LUISS’s deliverable on fiscal policy coordination has been published as a CeLEG Working Paper. It will be reviewed and updated before delivering the final version for the FIRSTRUN project at the end of August 2016.

Alexandre Lucas Cole, Chiara Guerello and Guido Traficante (2016). One EMU Fiscal Policy for the EURO. CeLEG Working Paper Series No. 02/16.

The authors welcome comments and feedback:
Alexandre Lucas Cole:
Chiara Guerello:
Guido Traficante:

Iain Begg, Annette Bongardt, Kalypso Nicolaidis and Francisco Torres on EMU and sustainable integration

This paper considers what will be required to make Economic and Monetary Union (EMU) sustainable following the successive crises of recent years. It starts by laying out the policy benchmark, namely the successive ‘President Reports’ produced by EU institutions. It then suggests three dimensions of sustainable integration relevant to EMU, namely the pursuit of sustainable growth, the need to take into account what we call ‘varieties of modernisation’ and the ‘ownership’ of democratically sustainable reforms. It then evaluates the recasting of EMU governance against the benchmark of sustainable integration.

Iain Begg, Annette Bongardt, Kalypso Nicolaidis & Francisco Torres (2015), EMU and Sustainable Integration. Journal of European Integration, Volume 37, Issue 7, 2015, pages 803-816.

Tero Kuusi: The Finnish Great Depression of the 1990s: Soviet Trade or Home-Made?

This paper reconsiders the reasons for the Finnish Great Depression.The paper argues that during the crisis Finland experienced institutional adjustments that are largely neglected by the current literature, and argues that both financial and tax shocks may have contributed to the crisis more than it has been previously suggested. It is shown by using a general equilibrium model that together these factors can generate a large and widespread fall in key macroeconomic variables, whereas the results suggest that the direct impact of the collapse of the Soviet Union may not have been as large as suggested before.

Kuusi, Tero (23.9.2015). “The Finnish Great Depression of the 1990s: Soviet Trade or Home-Made?”. ETLA Working Papers No 32.