edited by ISPI



Dear reader,

we are pleased to welcome you to the first issue of RAstaNEWS' quarterly newsletter.
RAstaNEWS is a loose acronym standing for Macro-Risk Assessment and Stabilization Policies with New Early Warning Systems. We are a consortium of 12 universities and think tanks from 8 EU countries, joining together due to their common interest and expertise in economic and monetary aspects.
The project, which launched last February, is the EU's main 3-year enterprise to study the macroeconomic aspects of the Union and the Eurozone, and will be funded under the EU Commission's FP7 framework. You can find more information at our website.
RAstaNEWS partners share the belief that the EU is currently experiencing an unprecedented crisis, both at the economic and political level. On the economic side, what we have come to realize during the past few years is that state-of-the-art macroeconomic models failed to predict the depth of the crisis and are in urgent need of reform. These reforms will inevitably have a decisive impact on the economic governance institutions of the EU as a whole, and Eurozone's in particular.
In the next three years, our network aims to deliver groundbreaking scientific research, coupled with policy recommendations to be targeted at EU and national policymakers. We are also profoundly aware of the need to make all our products accessible to each and every one of you, and we will strive to make them available at different levels of depth and complexity.
So, on behalf of the RAstaNEWS network, we wish you a pleasant and fruitful journey through the realms of macroeconomic analysis and policymaking.

Prof. Patrizio Tirelli

Project Coordinator
Professor of Economics at the University of Milano Bicocca

Dr. Antonio Villafranca

Dissemination Coordinator
Senior Research Fellow at the Institute for International Political Studies (ISPI)



RAstaNEWS investigates many aspects of the future of macro-economic and monetary integration in Europe, paving the way to a revised governance of the EMU, and the EU as a whole, in the wake of the debt crisis.
Our project is based on the premise that rethinking the future of macroeconomic and monetary integration in Europe requires a substantial revision and integration of the underlying macroeconomic model and a new vision about what markets and policy-makers can accomplish.
Our theoretical and empirical research will focus on three key issues about the workings of the EU macro-economy that deserve deeper investigation. The first is the issue of incomplete and informationally inefficient financial markets. The second, is heterogeneity in expectations, which should play a fundamental role in explaining the behaviour of asset prices. The third issue is the need to overcome the traditional dichotomy between Keynesian (short run) and neoclassical (long run) policy prescriptions. Taking these issues seriously has important implications for the conduct of EU monetary and fiscal policies and for EU governance system.
In addition, to facilitate the timely identification of macro risks, we shall propose a new system of early warning indicators, to be implemented within the EMU surveillance mechanism.

Read more



In and Out the Doldrums: Italy and the EU Economic Governance

Franco Bruni (ISPI and Bocconi University) Read it here

Bringing Money Back to the Real Economy: Room for a TARGET3

Franco Bruni and Andrea Papetti (ISPI and Bocconi University) Read it here


On June 25th, PISM held a closed-door scientific workshop titled "Membership in the Reforming Euro Area: The CEE Perspective".
You can find the program here, or you can read the report collecting thoughts that emerged during the sessions.


On September 11th, the Money and Micro Finance Conference 2013 hosted a special RAstaNEWS session.
For papers and related speakers, find all details here (p.4)



Stay tuned for the announcement of the first annual RAstaNEWS dissemination conference!


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