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Philippe MARTIN publishes a lead article in The American Economic Review


Philippe MARTIN

Philippe MARTIN and co-author Thomas PHILIPPON have published a lead article in the prestigious journal American Economic Review entitled:

Inspecting the Mechanism: Leverage and the Great Recession in the Eurozone (link to PDF)

Philippe MARTIN, is Professor of Economics at the Department since 2009 - Department he chaired from 2009 to 2013.  He is also a CEPR Research Fellow. He was a member of the Council of Economic Advisers (CAE), advisory body to the French Prime Minister from 2012 to 2015. He bcame the Economic Advisor of Emmanuel MACRON while the latter was Minister of the Economy, Industry and Digital Affairs.

His fields of research are international macroeconomics and finance, economic geography, military conflicts.

Philippe MARTIN is currently concentrating his research on 1) the analysis of the impact of macroeconomic and tariff shocks on exports using firm level data, 2) the impact of quality on the price elasticity of export demand, 3) on the macroeconomic analysis of the euro crisis.

His recent article is in keeping with this direction:

Abstract:
"We provide a comprehensive account of the dynamics of eurozone countries from 2000 to 2012. We analyze private leverage, fiscal policy, labor costs and spreads, and we propose a model and an identification strategy to separate the impact of credit cycles, excessive government spending, and sudden stops. We then ask how eurozone countries would have fared with different policies. We find that countries could have stabilized their employment if they had followed more conservative fiscal policies during the boom. Macro-prudential policies and an early intervention by the ECB to prevent market segmentation and reduce fiscal austerity would also have significantly reduced the recession."

Link to CEPR VOX column: "What caused the great recession in the Eurozone? What could have avoided it? "

More about Philippe MARTIN and his research