Paul De Grauwe

Recognition In May 2013, De Grauwe was awarded the Arkprijs van het Vrije Woord (Ark Prize of Free Speech). He is also a fellow of the European Economic Association.

Market ideology

As a liberal and advocate of the free market De Grauwe has long time been a strong proponent of the market economy and globalisation. In De onvoltooide globalisering (The Uncompleted Globalisation), written for a broader audience, he explains why he favors globalisation and discusses the statements of anti-globalists, which he finds somewhat pessimistic. He sees himself as an optimist and believes that market forces and economic growth will offer a solution to the issues related to natural resources, energy, environment and climate.

However, in 2011, De Grauwe pointed out the necessity of government in this market economy. He said he used to uphold financial markets as bearers of the truth but now acknowledges that it is a world where rationality is intertwined with emotions. In an interview, he stated that certain entities are needed to correct market forces. Because of the 2008 financial crisis, the need to correct the market was greater than before. For this reason his acknowledgement of a strong government has increased.

In the context of the COVID-19 pandemic crisis, De Grauwe was also in favour of direct monetary financing of government spending by the European Central Bank.

Selected publications "The limits of markets", Oxford: Oxford University Press, 2017. "Economics of Monetary Union" (Ed.), Oxford: Oxford University Press, 2012. "Animal spirits and monetary policy", Economic Theory, vol. 47, no. 2, 2011, pp. 423 – 442. "The Return of Keynes", International Finance, vol. 13, no. 1, 2010, pp. 157 – 163. "The Fragility of the Eurozone’s Institutions", Open Economies Review, vol. 21, no. 1, 2010, pp. 167 – 174. "What have we learnt about monetary integration since the Maastricht Treaty?", Journal of Common Market Studies, vol. 44, no. 4, 2006, pp. 711 – 730. "Prospects for monetary unions after the Euro", Cambridge, MA: The MIT Press, 2005.

With others De Grauwe, P, & Ji, Y. (2013). "Panic-driven austerity in the Eurozone and its implications", Vox EU, Paper on voxeu.org, 21 February 2013. De Grauwe, P., & Kaltwasser, P. R. (2012). "The Exchange Rate in Behavioral Framework". In James, J., Marsh, I., & Sarno, L. (Eds.) The Handbook of Exchange Rates, Wiley. Altavilla C., & De Grauwe, P. (2010). "Non-Linearities in the Relation Between the Exchange Rate and the Fundamentals", International Research Journal of Finance and Economics, vol. 15, pp. 1 – 21. De Grauwe, P., Moesen, W. (2009). "Gains for all: a proposal for a common euro bond", Intereconomics, vol. 33, no. 3, pp. 132 – 141. De Grauwe, P., & Senegas, M. (2006). "Monetary policy design and transmission asymmetry in EMU: Does uncertainty matter?", European journal of political economy, vol. 22, no. 4, pp. 787 – 808. De Grauwe, P., & Zhang, Z. (2006). "Introduction: Monetary and economic integration in the East Asian region", World economy, vol. 29, no. 12, pp. 1643 – 1647. Aksoy, Y., De Grauwe, P., & Dewachter, H. (2002). "Do asymmetries matter for European monetary policy?", European Economic Review, vol. 46, no. 3, pp. 443 – 469.