Online debate: Which (feasible) new Reconstruction Instrument(s) does Europe need?
An initiative of the Pierre Werner Chair at the EUI Schuman Centre, jointly organised with the Florence School of Banking and Finance and the Tommaso Padoa Schioppa Chair.
Date: Wednesday 20 April 2020
To confront the COVID-19 crisis at the European level, the ECB has taken the lead with its Pandemic Emergency Purchase Programme (PEPP), to which other instruments have been added: EIB guarantees, the EC proposal for Support to mitigate Unemployment Risks in an Emergency (SURE) and, last week, the ESM’s new Precautionary Covid Line (PCL).
Nevertheless, there is widespread agreement – backed by the 17 April European Parliament resolution and 8 May Eurogroup statement – on the need to step-up the European response with a Recovery Fund and/or a well-structured Recovery Plan. The online seminar will focus on which are the most relevant European needs, and organisational forms, that a such plan should convey, in the light of the European Parliament initiatives and the – soon to be known – European Commission Recovery Plan.
> More information
Intangibles, Inequality and Stagnation
A lecture by Prof. Nobuhiro Kiyotaki (Princeton University), organised in the framework of the Pierre Werner Chair Programme on Monetary Union
Date: Friday 17 April 2020
We examine how aggregate output and income distribution interact with accumulation of intangible capital over time and across individuals. We consider an overlapping generations economy in which managerial skill (intangible capital) is essential for production, and it is acquired by young workers through on-the-job training by old managers. We show that, when young trainees are not committed to staying in the same firms and repaying their debt, a small difference in initial endowment and ability of young workers leads to a large inequality in accumulation of intangibles and income. Furthermore, a negative shock to endowment or the degree of commitment generates a persistent stagnation and a rise in inequality.
> Full paper
D&D (Debt and Default)
Pierre Werner Chair mini-conference - EUI (Florence), 29 October 2019
In the aftermath of the euro crisis, there is a tendency to put debt issues on the back burner. However, debtlevels are very high in some European countries and elsewhere and, in fact, a possible default and/or debtrestructuring is at the forefront in Argentina, one of the world most experienced countries on D&D!
The Pierre Werner Chair mini-conference, which is part of a project co-funded by the European Stability Mechanism, discussed ongoing research on D&D. An open, informal discussion on the current situation in Argentina took place before the main conference.
12.00 - 13.30 Open debate: Argentina's Next Default? with Dr. Juan Pablo Nicolini (Federal Reserve Bank of Minneapolis) | More information
13.30 - 18.00 PWC Mini-conference on D&D | More information | Download the papers and presentations