IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-031-10302-5_5.html
   My bibliography  Save this book chapter

Assessing Next Generation EU

In: Economic Challenges for Europe After the Pandemic

Author

Listed:
  • Lorenzo Codogno

    (London School of Economics and Political Science)

  • Paul Noord

    (Amsterdam School of Economics)

Abstract

The unprecedented fiscal package adopted by the European Council in the summer of 2020—dubbed Next Generation EU—was vital for the recovery of the euro area from the pandemic shock. However, our computations with a stylized macroeconomic model illustrate that an alternative approach, with ex ante risk sharing through the creation of a Eurobond and permanent fiscal capacity at the Centre, would have been at least as powerful, yet it would be more sustainable, automatic and timely.

Suggested Citation

  • Lorenzo Codogno & Paul Noord, 2022. "Assessing Next Generation EU," Springer Proceedings in Business and Economics, in: Luigi Paganetto (ed.), Economic Challenges for Europe After the Pandemic, pages 59-82, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-10302-5_5
    DOI: 10.1007/978-3-031-10302-5_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Khalid Sekkat & Marco Buti & Carlos Martinez-Mongay & Paul van den Noord, 2003. "Macroeconomic policy and structural reform: a conflict between stabilisation and flexibility?," ULB Institutional Repository 2013/7388, ULB -- Universite Libre de Bruxelles.
    2. Spyros Alogoskoufis & Sam Langfield, 2020. "Regulating the Doom Loop," International Journal of Central Banking, International Journal of Central Banking, vol. 16(4), pages 251-292, September.
    3. Viral Acharya & Itamar Drechsler & Philipp Schnabl, 2014. "A Pyrrhic Victory? Bank Bailouts and Sovereign Credit Risk," Journal of Finance, American Finance Association, vol. 69(6), pages 2689-2739, December.
    4. Aleksandra Sojka & Jorge Diaz-Lanchas & Federico Steinberg, 2019. "The Politicization of Transatlantic Trade in Europe: Explaining Inconsistent Preferences Regarding Free Trade and the TTIP," JRC Working Papers on Territorial Modelling and Analysis 2019-09, Joint Research Centre.
    5. Mr. Manmohan S. Kumar & Mr. Emanuele Baldacci, 2010. "Fiscal Deficits, Public Debt, and Sovereign Bond Yields," IMF Working Papers 2010/184, International Monetary Fund.
    6. Richard Bronk & Wade Jacoby, 2020. "The epistemics of populism and the politics of uncertainty," LEQS – LSE 'Europe in Question' Discussion Paper Series 152, European Institute, LSE.
    7. Ioannis Laliotis & Guiseppe Moscelli & Vassilis Monastiriotis, 2019. "Summertime and the drivin’ is easy? Daylight Saving Time and vehicle accidents," LEQS – LSE 'Europe in Question' Discussion Paper Series 150, European Institute, LSE.
    8. Mr. Jarkko Turunen & Mr. Richard T. Harmsen & Mr. Tamim Bayoumi, 2011. "Euro Area Export Performance and Competitiveness," IMF Working Papers 2011/140, International Monetary Fund.
    9. Ioannis Laliotis & Guiseppe Moscelli & Vassilis Monastiriotis, 2019. "Summertime and the drivin’ is easy? Daylight Saving Time and vehicle accidents," LEQS – LSE 'Europe in Question' Discussion Paper Series 150, European Institute, LSE.
    10. Jeromin Zettelmeyer & Álvaro Leandro, 2018. "Europe's Search for a Safe Asset," Policy Briefs PB18-20, Peterson Institute for International Economics.
    11. Mr. Benedict J. Clements & Mr. Zenon Kontolemis & Mr. Joaquim Vieira Ferreira Levy, 2001. "Monetary Policy Under EMU: Differences in the Transmission Mechanism?," IMF Working Papers 2001/102, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philipp Pfeiffer & Janos Varga & Jan in 't Veld, 2021. "Quantifying Spillovers of Next Generation EU Investment," European Economy - Discussion Papers 144, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Nicola Acocella, 2022. "Rediscovering Economic Policy in Europe?," Review of Economics and Institutions, Università di Perugia, vol. 13(1-2).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lorenzo Codogno & Paul van den Noord, 2019. "The rationale for a safe asset and fiscal capacity for the Eurozone," LEQS – LSE 'Europe in Question' Discussion Paper Series 144, European Institute, LSE.
    2. Gerard Delanty, 2020. "Six political philosophies in search of a virus: Critical perspectives on the coronavirus pandemic," LEQS – LSE 'Europe in Question' Discussion Paper Series 156, European Institute, LSE.
    3. Bob Hancke & Toon Van Overbeke & Dustin Voss, 2021. "Similar but different? Comparing economic policy responses to the Corona Crisis in the UK and Germany," LEQS – LSE 'Europe in Question' Discussion Paper Series 165, European Institute, LSE.
    4. Tobias Tesche, 2020. "The European Union's response to the coronavirus emergency: an early assessment," LEQS – LSE 'Europe in Question' Discussion Paper Series 157, European Institute, LSE.
    5. Dimitry Kochenov, 2020. "Genuine Purity of Blood: The 2019 Report on Investor Citizenship and Residence in the European Union and its Litigious Progeny," LEQS – LSE 'Europe in Question' Discussion Paper Series 164, European Institute, LSE.
    6. Nina Lopez Uroz, 2020. "Populism Amidst Prosperity: Poland's Growth Model and its Socio-Political Outcomes," LEQS – LSE 'Europe in Question' Discussion Paper Series 159, European Institute, LSE.
    7. Mitchell Orenstein & Bojan Bugaric, 2020. "Populism Amidst Prosperity: Work, Family, Fatherland: The Political Economy of Populism in Central and Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 163, European Institute, LSE.
    8. Richard Bronk & Wade Jacoby, 2020. "The epistemics of populism and the politics of uncertainty," LEQS – LSE 'Europe in Question' Discussion Paper Series 152, European Institute, LSE.
    9. Meyland, Dominik & Schäfer, Dorothea, 2021. "Home Bias in Sovereign Exposure and the Probability of Bank Default – Evidence From EU-Stress Test Data," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242453, Verein für Socialpolitik / German Economic Association.
    10. Salvatore Dell’Erba & Emanuele Baldacci & Tigran Poghosyan, 2013. "Spatial spillovers in emerging market spreads," Empirical Economics, Springer, vol. 45(2), pages 735-756, October.
    11. Helge Berger & Giovanni Dell’Ariccia & Maurice Obstfeld, 2019. "Revisiting the Economic Case for Fiscal Union in the Euro Area," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(3), pages 657-683, September.
    12. Beirne, John & Renzhi, Nuobu & Volz, Ulrich, 2021. "Feeling the heat: Climate risks and the cost of sovereign borrowing," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 920-936.
    13. Nikolay Hristov & Oliver Hülsewig & Benedikt Kolb, 2021. "Macroprudential Policy and the Sovereign-Bank Nexus in the Euro Area," CESifo Working Paper Series 9342, CESifo.
    14. Depalo, Domenico, 2023. "Should the Daylight Saving Time be abolished? Evidence from work accidents in Italy," Economic Modelling, Elsevier, vol. 128(C).
    15. Nadal De Simone, Francisco, 2021. "Measuring the deadly embrace: Systemic and sovereign risks," Research in International Business and Finance, Elsevier, vol. 56(C).
    16. António Afonso & Frederico Silva Leal, 2017. "Sovereign yield spreads in the EMU: crisis and structural determinants," Working Papers Department of Economics 2017/09, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    17. Nicolas Soenen & Rudi Vander Vennet, 2020. "ECB Monetary Policy and Bank Default Risk," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/997, Ghent University, Faculty of Economics and Business Administration.
    18. Stefano Castriota & Mirco Tonin, 2023. "Stay or flee? Hit-and-run accidents, darkness and probability of punishment," European Journal of Law and Economics, Springer, vol. 55(1), pages 117-144, February.
    19. Soenen, Nicolas & Vander Vennet, Rudi, 2022. "ECB monetary policy and bank default risk☆," Journal of International Money and Finance, Elsevier, vol. 122(C).
    20. Adler, Gustavo & Lizarazo, Sandra, 2015. "Intertwined sovereign and bank solvencies in a simple model of self-fulfilling crisis," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 428-448.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-031-10302-5_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.