SINGLE-PUBBLICAZIONE

Action Policy Digest April 2020

Autore :

Data: 14-04-2020

Tipo: Other

Tematica: Action Institute

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.
FINANCE

Facing the lower bound: what will the ECB do in the next recession?. In responding to the global financial crisis, the European Central Bank has pushed its monetary policy into unchartered territories. This paper seeks to understand this challenge and assess whether its toolkit would allow the ECB to weather a European recession.

“When is growth at risk?”. Do financial market participants, collectively, possess special wisdom about when economies are at risk of falling into a recession? This a paper suggests “Probably not.”

The asset markets and the coronavirus pandemic. The lockdowns in place around the world will result in substantial economic collateral damage. This column looks at stock market reactions prior to and after six prominent historical crises. Equity market prices like the Dow Index are negatively impacted by increases in uncertainty.

Coronavirus: how are countries responding to the economic crisis?. The coronavirus pandemic is slowing global commerce to a crawl, but many of the world’s largest economies are taking extraordinary actions to propel them through the crisis and, hopefully, into a rapid recovery.

INNOVATION AND DEVELOPMENT

What can the Digital Transformation and IoT achieve for Agenda 2030?. Digital technologies can drive growth, connect people and help us protect the environment. At the same time, they can lead to market concentration, fuel precarious working conditions and consume vast amounts of energy. The Internet of Things (IoT) is a perfect example of this tension, and embodies both the promise and the peril of digitalisation.

A big problem for the Coronavirus economy: the internet doesn’t take cash. As the U.S. economy physically shuts down, access to digital payments is becoming a necessity. The Internet economy does not take cash. This Covid-19 recession is bringing to the surface a long-standing divide over the cost and accessibility of digital payments.

 

EUROPEAN AFFAIRS

How has the macroeconomic imbalances procedure worked in practice to improve the resilience of the euro area?. This paper shows how the Macroeconomic Imbalances Procedure (MIP) could be streamlined and its underlying conceptual framework clarified. Despite past reforms, the MIP remains largely a country-by-country approach running the risk of aggravating the deflationary bias in the euro area.

The European Commission’s SURE initiative and euro area unemployment re-insurance. The European Commission proposes a pan-European support for short-time work arrangements (SURE). This column discusses the relationship between this proposal and the idea of a European unemployment re-insurance scheme.

Europe’s debate on fiscal policy. The initiatives taken by the ECB in mid-march 2020 flatten the structure of interest rates and ensure short-term sustainability for the European countries with high government debt/GDP ratios.

Coronavirus and the politics of a common fiscal instrument. Coronavirus means many European Union countries will soon face major increases in their sovereign debt burdens, exacerbated by the sudden collapse of economic activity. What should the European Union do to address these debt problems?

SOCIAL POLICY

How many jobs can be done at home?. Evaluating the economic impact of ‘social distancing’ measures taken to arrest the spread of COVID-19 raises a fundamental question about the modern economy: How many jobs can be performed at home?

Credit

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

Herbert Hoover […]

Health

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

World Health Organization […]

Innovation

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 […]