EA November 2017

As Europe’s Recovery Accelerates, ECB Ratchets down Stimulus - No “Taper Tantrum” after Widely Expected “Lower for Longer” Announcement

Spellman 1Europe’s central bank announced last week it will taper its unprecedented stimulus by reducing purchases of debt (“lower for longer”) and holding interest rates steady, tactics calibrated to support Europe’s accelerating recovery, curtail the euro’s recent appreciation, and stoke inflation’s embers.

The Frankfurt-based institution will cut its monthly purchases of government and corporate bonds by half starting in January to $35 billion (€30 billion) and continue that pace until at least through September next year. Nearly three years ago, the bank began buying assets, including public and private bonds, to stabilize the euro, hold interest rates low, and pump more money into the economy. These “quantitative easing” measures augmented the negative interest rates the bank had set.[1]

Read more...
 
  • How Automation Shapes the Labor Market AND Political Preferences

    By Thomas Kurer, University of Zurich and Bruno Palier, Sciences Po, Paris

    We do not believe that Brexit, Trump, or the alarming success of radical right parties in almost all European countries should be interpreted as mere “electoral accidents.” Instead, we suggest that the current destructuring of political systems is connected to the profound transformation of labor markets in times of automation. Our core argument is that the specific effects of current technological innovations are key to understanding their political implications.

    Read more ...

UMD Jean Monnet Research Project

The University of Maryland has received a Jean Monnet grant from the EU to conduct a series of policy exchanges between Europe and the US on filling infrastructure needs and the utility of public/private partnerships as the financing mechanism. If interested in participating in or receiving more information about these exchanges, please contact Rye McKenzie (rmckenzi@umd.edu).

New from the Bertelsmann Foundation

The Bertelsmann Foundation is an independent, nonpartisan and nonprofit think tank in Washington, DC with a transatlantic perspective on global challenges.

"Edge of a Precipice" by Nathan Crist

"Newpolitik" by Emily Hruban

 

Summer Course