Wirtschaftspolitische Herausforderungen 2014
Alexander Herzog-Stein (),
Ansgar Rannenberg (),
Katja Rietzler (),
Silke Tober and
No 90-2014, IMK Report from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute
Effectively ending the crisis in the euro area remains the key policy challenge in 2014. As monetary policy has exhausted its conventional options, fiscal policy is called upon to provide an expansionary impulse by raising public investment. The high level of risk premiums in the crisis-hit countries continues to impair monetary policy transmission. If governments agreed on a temporary debt redemption fund, the ECB could engage in large-scale unconventional policy measures such government bond purchases to cancel out sovereign yield differentials in the euro area. Monetary policy could then stimulate the economy in the crisis-hit countries.The coalition agreement is pointing in the right direction regarding the labor market. The pension proposals, however, are patchwork and unable to solve the fundamental problem of an excessive lowering of the pension level and the concomittant higher risk of old-age poverty.
Pages: 19 pages
New Economics Papers: this item is included in nep-age and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.boeckler.de/pdf/p_imk_report_90_2014 [301 Moved Permanently]--> https://www.boeckler.de/pdf/p_imk_report_90_2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imk:report:90-2014
Access Statistics for this paper
More papers in IMK Report from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Nemitz ().