Archivi tag: ESM


Among the intense debate about the European Stability Mechanism, some economists claim that under the ESM conditionalities Italy would finally implement the structural reforms it needs to enhance its productivity and competitiveness. Although economists have asked these measures for years, politicians have been too populist and selfish to endanger their popularity and approve unpopular policies in the short-term, but that would strengthen Italian economy in the long-term. This view is widely shared inside economics departments, also among many students. Despite its diffusion, this claim is wrong because it implies that economics oversteps its boundaries by imposing political decisions in an authoritarian way. In this article I explain my view after having briefly discussed the features of ESM and its effectiveness (when I talk about ESM borrowings I do not mention the unconditional borrowings up to 2% of GDP approved during the last Eurogroup).

  [Read More]


The Covid-19 crisis highlights the unescapable weaknesses of the grounds of the European project. History is calling us, asking for inevitable changes for a better future, leaving behind what has already been proved not to work.
For this reason, we propose some measures which face the inconsistencies of the institutional and economic system of the European Union, both for the most effective response to the emergency and for a medium-long run horizon.

[Read More]


‘Eurobonds’ are securities denominated in a foreign (respect to the country of issuing) currency. Then, why everybody is so concerned, especially now days, about something that exist since 1963 – when Autostrade issued in Italy for the first time 60.000 bonds denominated in U.S. Dollar? Well, the ‘Eurobond’ we are talking about is also called ‘stability bond’, a government’s bond, denominated in euro, issued jointly by eurozone states. Again, ‘what’s the point?’, we all know sovereign is issued also, if not primary, through traded securities. The point here is what is underlying the issues of common government securities, i.e. interest rates and collaterals.
In this series of articles, we will explain what Eurobonds are, why there are so many concerns around them and if they could be developed someday soon. In particular, we will go through European peculiarities and we will analyse all viable options to face extreme conditions as it is for COVID-19.



[Read More]


In the last 20 years we have witnessed political and economic processes becoming more and more interconnected and interdependent. Still, it is taking us some time to acquire awareness of the mechanisms behind  such processes. The bottom line of our first 20 years of this century is one: the gradual disappearance of the middle class, the rise to power of populist parties and an increasing inequality even between the richest. In these processes a major role is played by the banks, and the policies adopted to save them.

[Read More]


On March 12, the ECB held a press conference, in which Christine Lagarde announced and commented on the new measures to counter the economic downturn triggered by the spread of the virus. Below, we shortly review and explain these measures, compare the policies of Lagarde and Draghi, the previous ECB president, and give some final considerations on [Read More]



La moneta unica è al centro di numerose polemiche alla luce della recente crisi economica e finanziaria e dalle politiche economiche che poco hanno fatto, secondo l’opinione di alcuni, per contrastarla.


Tuttavia, dobbiamo sgombrare il campo da fraintendimenti e malintesi, sempre nel rispetto dell’opinione di tutti e nella consapevolezza che non esiste una Verità, ma che insieme si può contribuire ad avvicinarsi a una migliore comprensione degli eventi.


L’articolo “La favola dell’euro” mette in risalto dei punti piuttosto interessanti, cari a chi sostiene politiche economiche di tipo keynesiano, recenti in questo periodo di ciclo economico negativo. Questo articolo di risposta non si propone di criticare l’impostazione keynesiana, dato che anche l’autore di questa risposta è d’accordo su una politica economica più proattiva e anticiclica in fase di crisi, ma suggerisce alcune precisazioni di tipo economico e politico. [Read More]