Action Policy Digest September 2021

Autore : Action Institute

Data: 13-09-2021

Tipo: Other

Tematica: Action Institute

Hello, Action Policy Digest readers!
Organized as a monthly newsletter, it presents an overview of the current international policy debate. You find below a selection of the best ideas from the most influential think tanks, structured in four areas: (i) Finance, (ii) Innovation and Development, (iii) European Affairs and (iv) Social Policy.





Banks’ IT adoption and lending during the pandemic”. The COVID-19 pandemic increased the pace of change in clients’ relationships with the banking sector, with mobility restrictions forcing banks to make better use of information technology (IT) to accommodate the increasing demand for digital financial services. This column analyses the role of IT adoption in bank lending since the outbreak of the pandemic.

The future is today“. Credit rating agencies’ ‘long-term’ sovereign ratings supposedly reflect credit risk up to ten years. But the biggest risks on the horizon to sovereign solvency, such as climate and demographic change, are not cyclical. They are structural. And they are long-term.

IMF loans and offshore financial flows“. Recent research suggests that World Bank aid disbursements are associated with outflows from recipient countries to offshore financial centres, indicating elite capture of aid. This column uses 25 years of data to examine whether the same is true for IMF lending.

How much investment do we need to reach net zero?“. The size and scope of investments needed to reach net zero will have significant macroeconomic implications.



 How open-source software shapes AI policy“. Open-source software (OSS) quietly affects nearly every issue in AI policy, but it is largely absent from discussions around AI policy—policymakers need to more actively consider OSS’s role in AI.




 Europe shouldn’t worry about Inflation“. The fear of inflation is stalking Europe again. Policymakers are right to be relaxed.

 Fiscal-monetary crosswinds in the euro area: Conventional and unconventional shocks“. Monetary policy has fiscal implications since its effect on interest rates, inflation and output relaxes or tightens the general government inter-temporal budget constraint. This column discusses estimates of the fiscal responses to monetary policy in the euro area.

 Will European Union recovery spending be enough to fill digital investment gaps?“. The recovery facility will boost digital transformation, but questions remain whether it will be sufficient to achieve Europe’s digital ambitions.





 Efficiency and equity in a socially embedded economy“. There has been a spate of critiques of mainstream, neoclassical economics in the last few years. This column argues that this is partly the result of a core general model that is too narrow. Instead, the authors propose a base model that includes not just the economy, but also the socioeconomic system. The model encompasses many specific themes in the literature such as the interplay between economic inequality and efficiency, but it also takes us well beyond the conventional economic resource allocation-based perspective on inequality.


Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs.

Herbert Hoover […]


Good health is essential to social and economical development and it empowers all of the public sectors.

World Health Organization […]


Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.

Peter Drucker […]

Human Capital

Talent is a source from which water flows constantly renewed. But this source loses its value unless it is properly used.

Ludwig Wittgenstein […]