Recent Policy Proposals

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Catenarian fiscal discipline

Author: Hans Gersbach
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Date posted: January 4, 2014
Abstract:
Democratic governments tend to accumulate excessive debt. This column proposes a new rule – the ‘Catenarian Fiscal Discipline’ – which allows a fiscally disciplined incumbent to limit the debt-making of the next officeholder. This way, fiscal discipline today can lead to fiscal discipline in the future. Such a rule would require that we broaden our notion of representative democracy by recognising the fact that a current government already has various implicit ways of limiting what its elected successors can do.

Should the ECB publish its minutes?

Authors: Hans Gersbach and Volker Hahn
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Date posted: October 7, 2013
Abstract:
The publication of attributed voting records and minutes of the ECB council’s meetings would increase the influence of national governments and discourage pro-Eurozone behaviour. This column argues that this would be undesirable. Publishing non-attributed summary minutes, however, would enhance the ECB’s accountability towards the public.

True independence for the ECB: Triggering power - no more, no less

Authors: Markus K Brunnermeier and Hans Gersbach
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Date posted: December 20, 2012
Abstract:
As governments and the EU wring their hands over banking reform, a fragile system remains in place. This column argues that the ECB’s current role undermines its independence. What the Eurozone needs to reduce undue forbearance - while preserving the ECB's independence - is a ‘diarchy’ in which both a newly built Restructuring Authority and the ECB have the power to trigger bank-restructuring.

Raising the bar for incumbents

Author: Hans Gersbach
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Date posted: January 3, 2012
Abstract:
Incumbent politicians have a host of advantages in US elections; members of the US Congress are typically re-elected about 90% of the time. This column argues that such a head start can often be bad for the country, with leaders focusing on short-term populist policies rather than the greater good. It suggests raising the bar for incumbent candidates.

Money and banking – realigned efficiently

Author: Hans Gersbach
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Date posted: October 12, 2011
Abstract:
Current macroeconomic policymaking suffers from an inadequate range of instruments and the absence of a comprehensive assignment of responsibilities. This column introduces a new CEPR Policy Insight designed to remedy these shortcomings. It proposes a framework for monetary, macroprudential, and microprudential policies.

 
 
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