Download or read book The Macroeconomic Imbalance Procedure written by and published by . This book was released on 2016 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Compendium takes stock of the implementation of the Macroeconomic Imbalance Procedure (MIP) five years since its introduction.
Download or read book The Macroeconomic Imbalance Procedure written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: What is the macroeconomic imbalance procedure? What are the elements of its scoreboard? Once those elements are taken into account, how does the procedure evolve in the wider context of the European Semester? This paper attempts to put these elements in context and provides an introduction to the subject, as well as a flavour of the debate driven by academia and European institutions, in view of the general discussion on European economic governance, taking place in 2020 and 2021.
Download or read book The Macroeconomic Imbalance Procedure written by and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study employs statistical methods to further develop the Macroeconomic Imbalance Procedure (MIP) Scoreboard in line with the European Parliaments regulation of 2011, so as to make it an even better information aggregation, decision making and communication tool. The contribution to the literature and ongoing policy debate is threefold. First, we synthesize the current empirical literature and show that the predictive power of the MIP Scoreboard has so-far been limited. Second, we apply the methodology of composite indicators, step-by-step on the European Statistical Office (Eurostat) MIP Database (2005-11, 28 Member States, 11 MIP Indicators). By doing so, we spotted few outliers in the headline database, recommended normalised measures (red flag analysis, distance-to-target) already advocated by the European Commission, and conducted multivariate analysis revealing that MIP indicators are only weakly collinear and it is unlikely that they share common factors. Still, when applying the signals approach, which is a standard technique used by earlier empirical studies, a composite measure of threshold breaches was the available second best indicator to signal crisis events in advance. Third, we found that introducing two sided thresholds could be an obvious choice for some flow variables in the MIP scoreboard to identify imbalances both ex-ante and ex-post (in accordance with the prevention and correction goals of the MIP). Such two sided thresholds have been already introduced for two MIP indicators: for the current account deficit and for the real effective exchange rate. Real house prices, unemployment and private sector credit flow could be further candidates to consider for two sided thresholds.
Download or read book Audit of the Macroeconomic Imbalance Procedure MIP written by and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examined the European Commission's implementation of the Macroeconomic Imbalance Procedure, which aims to identify, prevent and address macroeconomic imbalances that could adversely affect economic stability in a particular EU country, the euro area, or the EU as a whole. We found that although the MIP is generally well designed, the Commission is not implementing it in a way that would ensure effective prevention and correction of imbalances. The classification of Member States with imbalances lacks transparency, the Commission's in-depth analysis despite being of a good standard has become less visible and there is lack of public awareness of the procedure and its implications. We therefore, make a number of recommendations to the Commission to substantially improve certain aspects of its management and to give greater prominence to the MIP.
Download or read book Macroeconomic Imbalances Procedure written by Lorenzo Codogno and published by . This book was released on 2020 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main aim of the paper is to assess the contribution of the Macroeconomic Imbalance Procedure (MIP) to its original objectives. It analyses whether the European Union and the Euro Area are today better equipped to identify and prevent unsustainable macroeconomic developments in the future. It provides an overview of how the MIP has worked in practice. It presents some stylised trends in macro variables and how the procedure tracks them. It provides a counterfactual exercise on how the procedure would have helped to address the underlying problems in those Member States that required financial assistance during the financial and economic crisis. The main policy recommendations of the study are that some re-tooling of the MIP is necessary and that increasing its ownership at the national level is essential.
Download or read book Macroeconomic Imbalance Procedure written by Vincent Cogen and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The European Semester and the Macroeconomic Imbalance Procedure written by Sébastien Martino and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How Has the Macro economic Imbalances Procedure Worked in Practice to Improve the Resilience of the Euro Area written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the effects of the implementation of the Macroeconomic Imbalance Procedure (MIP) on the macroeconomic performance of countries in the EU and the euro area. We find that the introduction of the MIP led to a decline in current account imbalances and private sector debt and credit flows, but that the overall effects are limited. To strengthen the MIP, we support the introduction of the Budgetary Instrument for Convergence and Competitiveness, i.e. a fund that pays grants, conditional on the implementation progress of economic reforms. This document was prepared for the Economic Governance Support Unit at the request of the ECON Committee.
Download or read book The Macroeconomic Imbalance Procedure written by Alfredo Arahuetes García and published by . This book was released on 2018 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides an empirical analysis of the Macroeconomic Imbalance Procedure (MIP). It explores the relationship between sovereign bond yields spreads and the variables contained in the MIP scoreboard using quantile regressions. Results suggest that MIP indicators can explain the behavior of sovereign spreads two, three and four quarters in advance. The scoreboard can't capture strong non-variant country effects that affect the evolution of spreads as well as the different impact that each indicator has on different countries. The introduction of employment indicators has reduced the aggregate effect that country effects have on sovereign spreads.
Download or read book Macroeconomic Imbalances in Euro and Non Euro Area Member States written by Daniela Bobeva and published by . This book was released on 2016 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent reforms in the European economic governance framework add to the Stability and Growth pact requirements for establishing a new macroeconomic surveillance mechanism for both euro area and non-euro area countries. The early identification and the prevention of imbalances are of vital importance in a monetary union due to the limitations they impose on the tools available to economic policymaking. This paper examines the macroeconomic imbalances in the euro area countries in comparison with the non-euro area countries based on the set of indicators in the Scoreboard that is part of the Macroeconomic Imbalance Procedure (MIP), introduced in 2011.While the aim of the new alert mechanism is to identify potential risks this study goes further in measuring the level of risks by the scope of the deviation from the established thresholds. For this purpose an Integral Macroeconomic Imbalance Indicator (IMII) is constructed. It serves for comparing the level of imbalances between the countries in pre- and post-crisis period. The composed IMII indicates a tangible reduction in the scale of imbalances as compared to the pre-crisis period but the divergence between the countries enlarges. The results undermine the assumptions that the euro area countries will exhibit fewer imbalances as compared to the countries outside of the monetary union. Based on the dynamics of IMII it could be assumed that maintaining the macroeconomic framework within the thresholds is necessary but not sufficient to prevent future crisis. The results further question the ability of the alert mechanism to identify the sources of a future crisis.
Download or read book Governing Imbalances in the Economic and Monetary Union written by David Jonas Bokhorst and published by . This book was released on 2019 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Macroeconomic Imbalances and Comparative Advantages in the Euro Area written by Stefan Collignon and published by ETUI. This book was released on 2012 with total page 141 pages. Available in PDF, EPUB and Kindle. Book excerpt: The emergence of macroeconomic imbalances among EU member states is often seen as a major underlying factor of the recent European debt crisis. In order to identify and tackle these imbalances, the European authorities established, in 2011, a new surveillance tool incorporating rules to prevent future imbalances and labelled the Excessive Imbalance Procedure (EIP). Stefan Collignon argues that the premises of the Excessive Imbalance Procedure are in fact wrong, and its implementation therefore misguided, in that they take for granted the policy framework of the nation state whereas the Euro Area economy is, in reality, integrated into a single market with a single currency, such that so-called ‘foreign’ debt is, effectively, debt to other residents in the Euro Area. The author demonstrates, furthermore, that strict adherence to the EIP could, in conjunction with other new economic governance instruments, entail devastating consequences for peripheral countries in the European Union. Following his observation that current indicators used by the Commission fail to provide a correct or accurate assessment of imbalances in the Euro Area, the author devises a new ‘Competitive Index’, calculated as the difference between actual and equilibrium unit labour costs, which he recommends as an alternative and better indicator in the context of the Alert Mechanism Reports to be issued by the European Commission in the future.
Download or read book Macroeconomic Imbalances in the Euro Area written by and published by . This book was released on 2018 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This occasional paper reviews the macroeconomic developments in the euro area countries over the past 20 years. It analyses the accumulation of macroeconomic imbalances in the first decade of the EMU and their unwinding during the second decade. It shows that while flow imbalances have been corrected to a large extent, stock imbalances persist. The presence of large stock imbalances implies that the adjustment process needs to continue in the years to come. Accordingly, this paper reviews the national responses so far and the importance of well-functioning national economic structures for facilitating the adjustment process within the EMU. It shows that national structural policies are able to stimulate the supply side of the economy, increase adjustment capacity and mitigate the adverse growth effects of high debt and deleveraging. Finally, it gives an overview of the European response to address macroeconomic imbalances, id est the establishment of the Macroeconomic Imbalance Procedure (MIP). The MIP has contributed to increasing the general attention given to macroeconomic imbalances in the euro area and to the critical role that structural reforms play in facilitating their adjustment. Looking forward, further steps would appear to be warranted in order to move from greater awareness towards stronger ownership and implementation of reforms.
Download or read book Public Finance and National Accounts in the European Context written by Joaquim Miranda Sarmento and published by Springer. This book was released on 2019-01-31 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers an essential guide to Public Finance and National Accounts in the context of the European Union. Since the creation of the Eurozone, fiscal policy has been at the heart of economic (but also political/media) discussions in the EU. From the Stability and Growth Pact (1997) to the more recent Fiscal Treaty, EU and Eurozone, countries have been subject to various fiscal rules. The importance of these rules, and of the subsequent procedures that every Eurozone country has to adhere to, is unquestionable. The book provides the reader with an in-depth understanding of the complex EU rules concerning fiscal policy, breaking down the corresponding legal texts into simple and accessible language. It has a broad interdisciplinary appeal, and scholars and practitioners whose work involves these areas will find it of particular interest.
Download or read book The Macroeconomic Imbalance Procedure and Germany written by Daniel Gros and published by . This book was released on 2013 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this new Policy Brief, CEPS Director Daniel Gros argues that the 13 November announcement of the European Commission that Germany is running an excessive current account surplus appears to be much ado about little. All the Commission can, and will, do is to start an 'in depth analysis'. This might lead to strong political reactions and an enormous echo in the media. But nothing of concrete substance is likely to follow.
Download or read book Macroeconomic Imbalances written by European Commission. Directorate-General for Economic and Financial Affairs and published by . This book was released on 2013 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: In last year's In-Depth Review (IDR), the Commission concluded that France was experiencing serious macroeconomic imbalances, in particular as regards developments related to export performance and competitiveness. In the new Alert Mechanism Report (AMR) published on 28 November 2012, the Commission found it useful, also taking into account the identification of a serious imbalance in May, to examine further the persistence of imbalances or their unwinding. To this end this IDR takes a broad view of the French economy in line with the scope of the surveillance under the Macroeconomic Imbalance Procedure (MIP).
Download or read book Macroeconomic Imbalances written by Commission Européenne. Direction Générale des Affaires Economiques et Financières and published by . This book was released on 2012 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This in-depth review (IDR) takes a broad view of the Slovenian economy in line with the scope of the surveillance under the macroeconomic imbalance procedure (MIP).
