What can Europe learn from Sweden? Four lessons for fiscal discipline

Augusto de la Torre, Eduardo Levy-Yeyati, Sergio Schmukler, 6 March 2010The fiscal crisis in several European countries has led many commentators to suggest novel solutions, including a holiday from the euro. This column examines the much-cited example of Argentina and argues that such ideas look better on paper than in practice. What these countries need is a “good old bailout” – conditional on “getting the house in order”.Full Article: Argentina all over again? Lessons for Europe

Giancarlo Corsetti, Harold James, 12 April 2010The fiscal crises in some EU countries have put considerable strain on the region. This column argues that the solution requires a credible demonstration of political will from its political leaders. It suggests a voluntary commitment to support struggling governments with financial means provided at a penalty rate and against a clearly defined spending reduction programme.

On January 30, 25 of 27 nations signed the Merkozy accord calling for strict budget discipline and "quasi-automatic sanctions" for nations that violate budget rules. Only the UK and Czech Republic refused to sign. Following that ceremonious signing it took precisely two days for European bureaucrats to propose "Application of the rules in a strict manner in the face of a downturn doesn’t make sense". Spain Poses Six-Pack Rules Challenge

C Randall Henning, Martin Kessler, 25 January 2012In the last few months, several Vox columns have drawn parallels between Europe today and an emerging – and even less stable – United States in the eighteenth century. This column stresses that Europe’s leaders in search of a fiscal union need not seek to replicate the US experience but they should at least learn from it.Full Article: Europe’s fiscal union: Lessons from US federalism

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.By Cees Bruggemans, Chief Economist of FNB.All three major rich regions (Japan, America, Europe) have fundamentally stumbled in recent decades.Has South Africa something to learn from their experiences or can we afford to ignore them?Japan stumbled first.

Daniel C Hardy, Heiko Hesse, 20 April 2013The IMF has recently argued that Europe’s financial sector has done much to address the recent financial crisis. This column argues that vulnerabilities remain, and calls for intensified efforts. Europe-wide stress tests will play a crucial role: selective asset-quality reviews and a high degree of transparency would add credibility and reduce uncertainty.

Program | Future of the Euro: Lessons from History: A Conference at UC Berkeley | April 15-16, 2013: April 15, 2013: 5 p.m. Keynote and Reception

Avinash Persaud, 25 April 2012Does Europe need a fiscal union to support its monetary union? This column argues that the cause of Europe’s problems is not public sector ill discipline but rather private sector ill discipline. In such a situation, it asks whether we should be trying to save a drowning man by putting him in a straightjacket.Full Article: The Eurozone need less Europe, not more