Saving the eurozone: Modelling an alternative vison of Europe.

Michell, Jo

Abstract

This Policy Brief tries to envisage a different Europe. It is the second in a series of three in which future macroeconomic scenarios for Europe are analysed using projections generated by the Cambridge-Alphametrics Model (CAM). This Policy Brief explores a scenario in which austerity is reversed and Eurozone countries experience a period of sustained capital investment. An increase in the European Federal Budget allows fiscal flows to offset the imbalances that inevitably occur within a heterogeneous monetary union. Under such a scenario, model simulations project sustained growth and containment of debt-to-GDP ratios.

• Report Type: Technical Report
• Publication Date: Jan 1, 2015
• Peer Reviewed: Not Peer Reviewed
• Keywords: Eurozone, macroeconomics, policy
• Public URL: https://uwe-repository.worktribe.com/output/843470
• Publisher URL: http://www.feps-europe.eu/en/publications/details/333