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The Challenge of Economic Rebalancing in Europe

Perspectives for CESEE Countries Edited by Ewald Nowotny, Governor, Doris Ritzberger-Grünwald, Director and Helene Schuberth, Head of Division, Oesterreichische Nationalbank, Austria
In the long aftermath of the acute global financial crisis of 2008/09, “rebalancing” the economy with new sources of growth and productivity remains a persistent necessity. This book addresses the resulting trade-offs and challenges. These needs, and the corresponding policy challenges, are especially prevalent in Europe, in particular Central, Eastern and South-Eastern Europe. On this issue, this book contributes lessons learned from earlier balance sheet recessions. It also addresses the often overlooked link between macroeconomic imbalances and economic inequality. Further contributions focus on the interaction between monetary policy and financial stability, adding a regional perspective to these important issues.
Published in Association with Oesterreichische Nationalbank, Austria
Extent: 264 pp
Hardback Price: $126.00 Web: $113.40
Publication Date: 2015
ISBN: 978 1 78471 979 1
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  • Economics and Finance
  • Financial Economics and Regulation
  • International Economics
  • Money and Banking
In the long aftermath of the acute global financial crisis of 2008/09, the need to get economies back on track and to handle high levels of public and private debt has created conflicting objectives. Challenges yet to be mastered are the need to avoid counterproductive measures of adjustment and the persistent need to “rebalance” the economy with new sources of growth and productivity. Hence, there is an urgent requirement for policies to reverse the decline in public and private investment, and to fuel innovation.

These needs, and the corresponding policy challenges, are especially prevalent in Europe, in particular Central, Eastern and South-Eastern Europe. On this issue, this book contributes important lessons learned from earlier balance sheet recessions. It also addresses the often overlooked link between macroeconomic imbalances and economic inequality. A mix of contributions from academics and policy-makers focus on the interaction between monetary policy and financial stability, adding regional perspectives to the resulting dilemmas and trade-offs.

This book is essential reading for the study of economics in emerging economies.
Contributors: T. Beck, M. Belka, S. Chakrabarti, D. Daianu, J.B. DeLong, N. Fabris, M. Gächter, M. Geiger, F. Glötzl, D. Gros, M. Holzner, J. in 't Veld, R.C. Koo, R. Kuodis, E. Nowotny, P. Pontuch, R. Raciborski, L. Reichlin, D. Ritzberger-Grünwald, H. Schuberth, M. Singer, L.E.O. Svensson, T. van Treeck

Contents:

Preface
Ewald Nowotny, Doris Ritzberger-Grünwald and Helene Schuberth

PART I FRAMING THE DISCUSSION ON REBALANCING CHALLENGES
1. European Investment to Support CESEE and Euro Area Countries
Ewald Nowotny

2. The Rebalancing Challenge in Europe
J. Bradford Delong

3. Mid-Term Growth Perspectives for CESEE
Marek Belka

4. Rebalancing the CESEE Economies: A Crucial Agenda for Future Years
Sir Suma Chakrabarti

PART II BALANCE SHEET ADJUSTMENTS AND ECONOMIC GROWTH
5. Fighting Balance Sheet Recessions: A Japanese Lesson for the Euro Zone
Richard C. Koo

6. Post-Crisis Recovery in Slow-Motion Mode: The Role of the Non-Financial Corporate Sector
Martin Gächter, Martin Geiger, Florentin Glötzl and Helene Schuberth

7. Private and Public Sector Deleveraging in the EU
Jan In't Veld, Peter Pontuch and Rafal Raciborski

PART III MACROECONOMIC ADJUSTMENTS AND ECONOMIC INEQUALITY
8. External Rebalancing: Is it Cyclical or Structural?
Daniel Gros

9. Macroeconomic Imbalances and Economic Inequality in CESEE
Mario Holzner

10. Inequality, the Crisis and Stagnation
Till van Treeck

PART IV THE FUTURE OF (CENTRAL) BANKING IN EUROPE
11. The ECB, the Banks and the Sovereigns
Lukrezia Reichlin

12. Europe's Banking Union: Glass Half Full or Glass Half Empty?
Thorsten Beck

13. What can Monetary Policy Achieve, and What is the Relation between Monetary Policy and Financial Stability?
Lars E.O. Svensson

PART V REGIONAL PERSPECTIVES ON MONETARY POLICY ISSUES: DILEMMAS AND TRADE-OFFS
14. Policy Trade-offs in CESEE and Elsewhere
Raimondas Kuodis

15. A Central Bank's Dilemmas in Highly Uncertain Times: A Romanian View
Daniel Daianu

16. A Monetary Financial Framework of the Central Bank of Montenegro: Is Financial Stability a Feasible Central Bank Goal?
Nikola Fabris

17. Inflation Targeting and Use of the Exchange Rate as a Monetary Policy Instrument: The CNB Experience
Miroslav Singer

Index